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1:13 PM ยท 9 April 2024

InMode deepens declines amid lower expectations and Hagens Berman class action ๐Ÿ“‰

Israeli-based medical aesthetic equipment and technology company InMode (INMD.US) loses 9% in pre-market after series of class actions from Hagens Berman, Levi Korsinsky and The Gross Law as well as lower than expected revenues expectations. Not only 'higher for longer' central banks policy but also, Israeli-Gaza war and tensions with Iran negatively impact stock valuation. Previously, company informed that expects rebound in demand, as rates will be lowered but as for now is still unclear will Fed change its policy in summer of 2024.

Company will report full Q1 report on 2 May. As for now, Inmode expects full year 2024 revenues between $485 mln -$495 mln, below avg analysts' estimate of $498.8 mln. Also, Q1 guidance came in lower than expected. Inmode expects $80 mln - $80.1 mln vs average estimate of $102.2 mln. What's more, the aesthetics industry remains significantly affected by the macro environment challenges. On the other hand, company has almost 0 debt and still high both gross and net margins. However, it cyclical business has very strong headwinds as we can see in the stock chart.

Inmode (D1)

Shares are traded below SMA50 / SMA200, and today Wall Street session suggests opening at $17, which is historically the lowest level since company listing. The most important, technical resistance zone is now set at $20 and $22 per share.

Source: xStation5

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