Why Is Inspire (INSP) Up 7.5% Since Last Earnings Report?

A month has gone by since the last earnings report for Inspire Medical Systems (INSP). Shares have added about 7.5% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Inspire due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for Inspire Medical Systems, Inc. before we dive into how investors and analysts have reacted as of late.INSP Q2 Earnings Beat Estimates, Gross Margin ContractsInspire Medical delivered an earnings per share of 45 cents in second-quarter 2025, up 40.6% year over year. The figure topped the Zacks Consensus Estimate by 104.6%.INSP’s Revenues in DetailInspire Medical registered revenues of $217.1 million in the second quarter, up 10.8% year over year. The figure beat the Zacks Consensus Estimate by 0.9%.Per management, the overall revenue growth was primarily driven by increased market penetration and increased physician and patient awareness of the Inspire system. However, this was partially offset by ENT surgeon capacity constraints and some U.S. patients and physicians delaying Inspire therapy until Inspire V is available at their location or while they trial GLP-1 medications.Inspire Medical’s Segment DetailsInspire Medical’s operations consist of two geographic regions — the United States and All other countries.In the quarter under review, U.S. revenues of $207.2 million reflected an increase of 10.3% from the year-ago quarter on a reported basis.As of June 30, 2025, Inspire Medical had 348 U.S. sales territories and 259 field clinical representatives compared with 335 and 230, respectively, as of Dec. 31, 2024.Revenues from All other countries totaled $9.9 million, up 23% year over year on a reported basis.INSP’s Margin AnalysisIn the second quarter, Inspire Medical’s gross profit increased 9.9% year over year to $182.4 million. However, the gross margin contracted 74 basis points (bps) to 84%.SG&A expenses jumped 20.8% year over year to $159.5 million. Research and development expenses decreased 9.2% year over year to $26.2 million. Operating expenses of $185.7 million increased 15.4% year over year.Operating loss totaled $3.3 million against the prior-year quarter’s operating profit of $5.1 million.Inspire Medical’s Financial PositionInspire Medical exited second-quarter 2025 with cash and cash equivalents and short-term investments of $300.9 million compared with $369.2 million at the first-quarter end.Cumulative net cash used in operating activities at the end of second-quarter 2025 was $4 million, against net cash provided by operating activities of $8.8 million a year ago.INSP’s OutlookInspire Medical has lowered its revenue and earnings per share outlook for 2025.The company now projects revenues in the range of $900 million-$910 million (representing growth of 12-13% from 2024 levels), lowered from the prior outlook of $940 million-$955 million (representing growth of 17-19% from 2024 levels). The Zacks Consensus Estimate is pegged at $949.1 million.Inspire Medical now expects its earnings per share for 2025 to be between 40 cents and 50 cents, lowered from the prior outlook of $2.20-$2.30. The Zacks Consensus Estimate is pegged at $2.26.How Have Estimates Been Moving Since Then?It turns out, estimates review have trended downward during the past month.The consensus estimate has shifted -118.76% due to these changes.VGM ScoresAt this time, Inspire has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for value investors.Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Inspire has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.Performance of an Industry PlayerInspire is part of the Zacks Medical Info Systems industry. Over the past month, Omnicell (OMCL), a stock from the same industry, has gained 5.3%. The company reported its results for the quarter ended June 2025 more than a month ago.Omnicell reported revenues of $290.56 million in the last reported quarter, representing a year-over-year change of +5%. EPS of $0.45 for the same period compares with $0.51 a year ago.Omnicell is expected to post earnings of $0.36 per share for the current quarter, representing a year-over-year change of -35.7%. Over the last 30 days, the Zacks Consensus Estimate has changed +50%.The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for Omnicell. Also, the stock has a VGM Score of A.Higher. Faster. Sooner. Buy These Stocks NowA small number of stocks are primed for a breakout, and you have a chance to get in before they take off.At any given time, there are only 220 Zacks Rank #1 Strong Buys. On average, this list more than doubles the S&P 500. We’ve combed through the latest Strong Buys and selected 7 compelling companies likely to jump sooner and climb higher than any other stock you could buy this month.You'll learn everything you need to know about these exciting trades in our brand-new Special Report, 7 Best Stocks for the Next 30 Days.Download the report free now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Inspire Medical Systems, Inc. (INSP): Free Stock Analysis Report Omnicell, Inc. (OMCL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks