Uncovering Potential: Inspire Medical Systems's Earnings Preview

Inspire Medical Systems (NYSE:INSP) is gearing up to announce its quarterly earnings on Monday, 2025-08-04. Here's a quick overview of what investors should know before the release.

Analysts are estimating that Inspire Medical Systems will report an earnings per share (EPS) of $0.21.

Anticipation surrounds Inspire Medical Systems's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Historical Earnings Performance

Last quarter the company beat EPS by $0.33, which was followed by a 1.98% increase in the share price the next day.

Here's a look at Inspire Medical Systems's past performance and the resulting price change:

Stock Performance

Shares of Inspire Medical Systems were trading at $124.54 as of July 31. Over the last 52-week period, shares are down 14.12%. Given that these returns are generally negative, long-term shareholders are likely a little upset going into this earnings release.

Analyst Observations about Inspire Medical Systems

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Inspire Medical Systems.

Inspire Medical Systems has received a total of 6 ratings from analysts, with the consensus rating as Outperform. With an average one-year price target of $197.33, the consensus suggests a potential 58.45% upside.

Analyzing Ratings Among Peers

This comparison focuses on the analyst ratings and average 1-year price targets of Integer Holdings, TransMedics Group and Envista Holdings, three major players in the industry, shedding light on their relative performance expectations and market positioning.

• Analysts currently favor an Buy trajectory for Integer Holdings, with an average 1-year price target of $138.0, suggesting a potential 10.81% upside.
• Analysts currently favor an Outperform trajectory for TransMedics Group, with an average 1-year price target of $135.83, suggesting a potential 9.07% upside.
• Analysts currently favor an Neutral trajectory for Envista Holdings, with an average 1-year price target of $20.75, suggesting a potential 83.34% downside.

Peers Comparative Analysis Summary

The peer analysis summary outlines pivotal metrics for Integer Holdings, TransMedics Group and Envista Holdings, demonstrating their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Inspire Medical Systems ranks at the top for Revenue Growth and Gross Profit among its peers. However, it has the lowest Return on Equity. Overall, it is positioned favorably compared to its peers in terms of financial performance.

Delving into Inspire Medical Systems's Background

Inspire Medical Systems Inc operates as a medical technology company. It focuses on the development and commercialization of minimally invasive solutions for patients with obstructive sleep apnea (OSA). It offers Inspire system, a neurostimulation technology that provides a safe and effective treatment for moderate to severe obstructive sleep apnea. The firm has operating footprints in the United States and Europe wherein, it generates a majority of its revenue from the United States.

Financial Insights: Inspire Medical Systems

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Inspire Medical Systems displayed positive results in 3 months. As of 31 March, 2025, the company achieved a solid revenue growth rate of approximately 22.75%. This indicates a notable increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Health Care sector.

Net Margin: Inspire Medical Systems's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 1.49%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 0.45%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): Inspire Medical Systems's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 0.39% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.05.

To track all earnings releases for Inspire Medical Systems visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.