Electromed's Q2 revenue rises 16.3% to record high, net income up 40.3%

Overview

• Airway clearance tech firm's Q2 revenue rose 16.3% yr/yr to to record high of $18.9 mln

• Net income for Q2 rose 40.3% to $2.8 mln

• Company repurchased $2.8 mln of common stock in Q2

Outlook

• Electromed did not provide specific guidance for future quarters or full year

Result Drivers

• HOMECARE SALES - Revenue in direct homecare business rose 18.4% due to increased sales representatives and higher revenue per representative

• MARKETING CAMPAIGN - 'Triple Down on Bronchiectasis' campaign boosted physician and patient awareness, aiding sales

• OPERATING LEVERAGE - Improved operating margin to 19.2% due to increased revenue and higher net revenues per device

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the advanced medical equipment & technology peer group is "buy"

• Wall Street's median 12-month price target for Electromed Inc is $36.00, about 31.2% above its February 9 closing price of $27.43

Press Release: ID:nBw6pFz6Za

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