Lake Street $15.00 US:From the report:
"The Growth Engine Is Ramping; Maintaining Buy Rating And $15 PT Last night, VMD reported results that exceeded our forecast for revenue and AEBITDA (slightly) but missed our $0.05 EPS estimate by $0.01. Revenue grew 18% and AEBITDA grew 33%. We sense results improved month over month during the quarter, and there does not appear to have been any slowdown during April. The $0.01 EPS miss was primarily the result of higher than expected spending on SG&A. We view this positively as it reflects VMD’s efforts to ramp up the Company’s growth engine. Demand remains solid, and we sense VMD is doing a great job finding and training people to help the Company grow. VMD has the equipment it needs to serve its growing patient population. Overall, we are encouraged by the outlook for VMD. We are increasing our forecast as highlighted in the table at right. We affirm our Buy rating and $15 PT.
HIGHLIGHTS • Results – Q1’22 total revenue of $32.3M was above our $30.6M forecast and beat management’s $30.6M-$32.0M guided range. Core revenue came in at $30.2M which was ahead of our $29.2M forecast and at the higher end of management’s guided range of $29.2M-$30.2M. Q1 results also benefited from $2.1M in Covid related equipment sales, exceeding management’s guided range of $1.4M-$1.8M. Q1’22 GM was 61.2% vs. 61.5% LQ and 62.4% LY. In Q1, the core business had a 63.5% GM vs. 63.0% LQ, and the Covid-related sales had a 40.0% GM vs. 46.9% LQ. Adjusted EBITDA of $7.3M was in line with our $7.2M forcast."