Earnings to watch: iRhythm (IRTC) reports Q3 results tomorrow

What happened

iRhythm Technologies is scheduled to report its third-quarter earnings Thursday afternoon. Analysts expect revenue to grow 15.3% year on year, slower than the 30.7% growth in the same quarter last year. Last quarter, the company reported $224.2 million in revenue, up 20.1% year on year, and beat analysts’ revenue and earnings-per-share estimates.

Confirmed

Global impact / market context

The report will show whether iRhythm’s sales growth is tracking the expected slowdown. Revenue below expectations or weaker outlook could reduce confidence in future sales; stronger results could support it. That may influence investor demand for the stock, though the article gives no forecast for the share-price response.

Analyst inference

Analysts generally reaffirmed their iRhythm estimates in the 30 days before earnings, suggesting little change in expectations. ResMed and DexCom both beat revenue estimates, but their results alone do not establish how iRhythm’s revenue or investor positioning will respond.

Analyst inference

What to watch

1. Compare reported third-quarter revenue with the expected 15.3% year-on-year growth; the result will indicate whether the anticipated slowdown from last year is accurate. Analyst inference
2. Check whether iRhythm reports earnings per share above or below analysts’ estimates, since the article says it beat those estimates last quarter. Analyst inference
3. Look for any change to full-year revenue guidance, or management’s outlook, because last quarter’s guidance matched analysts’ expectations and could shape sales expectations. Analyst inference

Evidence

• stockstory.org