What Happened?
Shares of medical technology company iRhythm Technologies (NASDAQ:IRTC) jumped 18% in the morning session after the company reported strong second-quarter earnings that surpassed analyst expectations and raised its full-year revenue forecast.
The medical technology firm disclosed that its revenue jumped 26.1% year-over-year to $186.7 million. The company posted a smaller-than-expected adjusted loss of $0.32 per share, which was a significant improvement over analyst forecasts of a $0.51 loss. Bolstering investor confidence, iRhythm lifted its full-year 2025 revenue guidance to a range between $720 million and $730 million, substantially higher than the prior consensus estimate. The company also announced an improved gross margin and a new strategic partnership to use artificial intelligence for earlier detection of undiagnosed arrhythmias.
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What Is The Market Telling Us
iRhythm’s shares are very volatile and have had 24 moves greater than 5% over the last year. But moves this big are rare even for iRhythm and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 18 days ago when the stock gained 3.2% after positive sentiment from Wall Street analysts who saw further potential in the company. The digital healthcare firm has garnered a "Moderate Buy" consensus rating from analysts. Based on ten recent analyst ratings, the average twelve-month price target for iRhythm sits at $138.60, suggesting potential upside from its current trading level. Nine out of ten of these analysts rate the stock as a "Buy." This bullish stance from market experts likely reflects confidence in iRhythm's Zio service, a platform that uses wearable biosensors and cloud-based data analytics to diagnose cardiac arrhythmias. The company's focus on integrating artificial intelligence to provide clinically actionable insights for physicians positions it well within the growing digital health sector.
iRhythm is up 88.1% since the beginning of the year, and at $168.27 per share, has set a new 52-week high. Investors who bought $1,000 worth of iRhythm’s shares 5 years ago would now be looking at an investment worth $1,320.
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