iRhythm Technologies (IRTC, Financial) has introduced its Zio long-term continuous ECG monitoring system to the Japanese market, branded as the Zio ECG Recording and Analysis System. This device offers uninterrupted heart monitoring for up to 14 days and utilizes an AI algorithm approved by the country's Pharmaceuticals and Medical Devices Agency. This launch signifies a notable improvement over existing cardiac monitoring methods in Japan, which typically include wired Holter monitors that record for only 24 to 48 hours and other patch-based alternatives that last up to 7 days.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 11 analysts, the average target price for iRhythm Technologies Inc (IRTC, Financial) is $129.64 with a high estimate of $152.00 and a low estimate of $104.00. The average target implies an upside of 19.38% from the current price of $108.59. More detailed estimate data can be found on the iRhythm Technologies Inc (IRTC) Forecast page.
Based on the consensus recommendation from 13 brokerage firms, iRhythm Technologies Inc's (IRTC, Financial) average brokerage recommendation is currently 1.7, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for iRhythm Technologies Inc (IRTC, Financial) in one year is $166.79, suggesting a upside of 53.6% from the current price of $108.59. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the iRhythm Technologies Inc (IRTC) Summary page.
IRTC Key Business Developments
Release Date: February 20, 2025
- Revenue: $164.3 million in Q4 2024, representing 24% year-over-year growth.
- Gross Margin: 70% in Q4 2024, an improvement from 66% at the beginning of the year.
- Adjusted Net Income: $0.2 million or $0.01 per share in Q4 2024, compared to an adjusted net loss of $25.8 million or $0.84 per share in Q4 2023.
- Adjusted EBITDA: $19.3 million or 11.7% of revenue in Q4 2024, compared to 1.8% in Q4 2023.
- Full Year Adjusted EBITDA: Negative $7.7 million or 1.3% of revenue for 2024.
- Operating Expenses: $116.7 million in Q4 2024, up 2.6% year-over-year.
- Free Cash Flow: Over $30 million generated during the last 3 quarters of 2024.
- Cash and Short-term Investments: Approximately $535.6 million at the end of Q4 2024.
- 2025 Revenue Guidance: $675 million to $685 million.
- 2025 Adjusted EBITDA Margin Guidance: Expected to range between 7% and 8% of full year revenues.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- iRhythm Technologies Inc (IRTC, Financial) achieved over 20% revenue growth in 2024, driven by sustained volume demand across all customer channels.
- The company celebrated 1 million patients registered for GeoMonitor in 2024, highlighting strong adoption of their new long-term continuous monitor.
- iRhythm Technologies Inc (IRTC) improved its gross margin profile from 66% at the beginning of the year to 70% by the fourth quarter of 2024.
- The company successfully expanded its international presence, launching ZO services in Austria, the Netherlands, Switzerland, and Spain, and received regulatory approval in Japan.
- iRhythm Technologies Inc (IRTC) reported its first positive adjusted net income in the fourth quarter of 2024, demonstrating a focus on profitable growth.
Negative Points
- The company faces potential tariffs from Mexico, Canada, and China, which could negatively impact gross margins by 50 to 75 basis points.
- iRhythm Technologies Inc (IRTC) continues to incur significant expenses related to FDA remediation efforts and DOJ subpoena activities, totaling approximately $11 million in 2024.
- There is a low single-digit pricing pressure expected in 2025, which could impact revenue growth.
- The company is still in the early stages of international expansion, with contributions from new markets expected to be modest in 2025.
- iRhythm Technologies Inc (IRTC) is managing ongoing regulatory and quality compliance issues, with remediation efforts expected to continue throughout 2025.
