Invacare (IVC) Stock: Headed Up On Earnings


Invacare Corporation (NYSE: IVC) is flying early on in the trading session this mroning, and for good reason. The company reported its financial results for the fourth quarter, exciting investors who are sending the stock running for the top. Today, we’ll talk about:

  • The financial results;
  • what we’re seeing from IVC stock as a result; and
  • what we’ll be watching for ahead. 

IVC Climbs On Financial Results

As mentioned above, Invacare is having a great day in the market today after reporting its financial results for the fourth quarter after the bell last night. Here’s what we saw from the report:

  • Losses – During the fourth quarter, IVC reported a loss in the amount of $1.2 million. That works out to a loss of $0.04 per share. Once adjusted for non-recurring gains, losses came in at $0.16 per share. 
  • Revenue – During the fourth quarter, the company reported revenue in the amount of $244.6 million. 
  • Full Year – On a full year basis, losses saw a large decline, coming in at $43.9 million or $1.33 per share. The company generated revenue of $972.3 million during the 2018 fiscal year. 

In a statement, Matt Monoghan, Chairman, President and CEO at IVC, had the following to offer:

We continued to execute on our strategy to return to growth and profitability, and we are proud of the many accomplishments we delivered during the year. We increased our commercial effectiveness in mobility and seating in NA/HME post-consent decree, launched innovative new products, meaningfully reduced SG&A expense, and continued to simplify our supply chain structure.

Europe continues to be the largest and strongest part of our portfolio. We realized net sales growth in the fourth quarter despite strategically reducing sales of less profitable products across Europe during the year. We look forward to continued growth from recent new product introductions in mobility and seating and lifestyles.

In NA/HME, we are excited about the growth opportunities in mobility and seating as reported net sales increased 8.5% for the year, with additional new product introductions expected in 2019. We also took deliberate actions during the fourth quarter to help offset adverse impacts from tariffs, and we continue to identify long-term alternative supply chain opportunities to further reduce material cost.

We were pleased to see the results of the IPG and Asia/Pacific segments, which continued to do well.

Looking ahead, we are well positioned to implement our enhanced transformation and growth plan, which we expect will accelerate operational improvements, including a return to profitability in NA/HME. I am confident that 2019 will be a positive period in the company’s journey.

What We’re Seeing From The Stock 

As investors, we know the importance of quarterly financial results. At the end of the day, we are largely making our decisions based on outdated financial data. So, earnings reports provide us with the most updated financial picture of companies that we’re thinking about investing in. 

In the case of Invacare, increasing revenue and declining losses drove excitement among investors. As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:51), IVC is trading at $8.57 per share after a gain of $3.25 per share or 61.09% thus far today. 

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will continue to keep a close eye on IVC. In particular, we’re interested in following the company’s continued work to cut costs, improve revenue and expand margins. Nonetheless, we’ll keep a close eye on the news and bring it to you as it breaks!

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