RxSight Inc. (RXST) just surged after a big beat-and-raise Q1. Revenue grew 68% to $35 million, beating by 8%, while adjusted EPS came in flat after a loss of $0.28 in Q2 last year – beating by $0.09, notes Tyler Laundon, editor of Cabot Small-Cap Confidential.
Full-year revenue guidance was increased by $5 million (twice the amount of the Q2 beat), from $132-$137 million to $139-$140 million. Growth in the quarter was driven by higher volume, placements, and utilization, which is exactly what we want to see.
RxSight Inc. (RXST)
On the conference call, management said patient demand for cataract surgeries and custom procedures remains high, despite a wonky economy, though there is some pressure from reduced healthcare reimbursements.
This quarter’s performance should be enough to wipe away concerns that RxSight was losing momentum (it clearly is not). The question now is whether or not RXST can carry this momentum forward and begin to perform as I had expected when we got into the stock in March. I’ll keep it at "buy," with the caveat being that my rating could change if momentum fades.
Recommended Action: Buy RXST.
