Butterfly Network’s strategic move, heralded by the launch of its third-generation handheld point-of-care ultrasound system, Butterfly iQ3, in Europe, fuelled a remarkable 26.9% surge in its stock on Sept. 4. The unveiling of the iQ3 device, backed by its successful reception in the U.S. market post-launch in February, has invigorated investor optimism.
Having secured EU MDR certification in March, Butterfly iQ3 stands fully compliant with the Restriction of Hazardous Substances Directive. With availability spanning all European nations and the United Kingdom, its recent entry into the Canadian market marked a significant milestone for the company. Butterfly Network is now steaming ahead with applications for regulatory green lights in other regions.
The Butterfly iQ3 symbolizes the company’s peak tech innovation in portable ultrasound devices, seamlessly complementing the earlier iQ+ model. The device is powered by Butterfly Network’s latest P4.3 chip, flaunting double the processing prowess compared to iQ+, resulting in top-tier image quality. Its enhanced 3D imaging tools deliver user-friendly functionalities, packaged in a compact and ergonomic design. Moreover, the higher price tag of the device, as opposed to iQ+, is poised to accelerate revenue growth.
Butterfly Network’s stocks have strategically advanced by 39.9% year-to-date, resonating well above the industry’s 13.5% descent, courtesy of the robust patronage towards Butterfly iQ3 within the U.S. borders. Eclipsing the competition, the S&P 500 Index has marked a 15.9% growth in the parallel timeframe.
Image Source: Zacks Investment Research
U.S. Triumph of BFLY’s iQ3
Butterfly Network’s stellar 16% revenue upsurge in the second quarter was spearheaded by the sturdy performance of Butterfly iQ3 in the United States, coupled with added sales traction post-launch in Canada. A notable 74% of the company’s total online orders were routed towards iQ3 during the quarter. In Canada, iQ3 accounted for an impressive 89% of total sales across all channels. Moreover, the company’s strategic initiative for device upgrades, offering customers an opportunity to transition from their outdated non-Butterfly products to the cutting-edge iQ3, presents a promising avenue for additional growth. The company successfully completed over a thousand probe upgrades in the second quarter.
Diving deeper, iQ3 sales constituted 50% of total unit sales during the second quarter, with a considerable 75% of total units vended within U.S. territories.
Revolutionary Impact of BFLY’s iQ3 on Patient Care
Unveiling a new era in ultrasound capabilities, Butterfly iQ3 hosts the advanced iQ Slice and iQ Fan features, enriching the imaging experience. iQ Slice facilitates the capture of up to 46 ultrasound slices simultaneously across a broad angle, streamlining image acquisition without necessitating intricate maneuvers. Conversely, iQ Fan serves as a dedicated lung tool, curtailing the actions needed for data capture and informed clinical decisions.
These pioneering elements seamlessly integrate with Butterfly’s existing arsenal, comprising over 20 anatomical presets, six imaging modes, and a suite of artificial intelligence and advanced imaging tools, bolstering a rich collection of calculation utilities.
Further underscoring its allure, Butterfly iQ3’s compact and ergonomic design has catapulted its acceptance across the U.S. and Canadian markets, a resonance likely to reverberate throughout Europe as well. This iteration boasts a 17% smaller probe face and a 7% shorter build than its predecessor, iQ+. Noteworthy improvements include an enhanced battery life of up to 2 hours for sustained scanning and rapid 2.5x faster charging times.
These enhancements, coupled with the device’s remarkable echo image quality and cannulation-friendly biplane mode, have showcased tangible benefits in managing patients with challenging IV access.
Butterfly Network, Inc. Price
Butterfly Network, Inc. price | Butterfly Network, Inc. Quote
BFLY’s Zacks Rank & Other Noteworthy Players
Butterfly Network proudly holds a Zacks Rank #2 (Buy) at present.
Some key players worth noting in the expansive medical sector are Boston Scientific (NYSE: BSX), Apyx Medical (NASDAQ: APYX), and Universal Health Services (NYSE: UHS), each boasting a Zacks Rank #2 presently.
Boston Scientific forecasts a robust long-term growth rate of 12.6%. Noteworthy for surpassing earnings estimates over the trailing four quarters, with an average surprise of 7.2%, BSX shares have surged by 41.4% year-to-date, outperforming the industry’s growth rate of 12.3%.
Apyx Medical anticipates a notable growth rate of 20% by 2025. Although encountering earnings misses over the past four quarters, escalating to a negative average surprise of 25.98%, APYX shares witnessed a 49.3% dip year-to-date amidst the industry’s 12.3% climb.
Universal Health Services projects a promising long-term growth rate of 19%. Bolstering this outlook with a consistent record of surpassing earnings estimates over the trailing four quarters, marked by an average 14.58% surprise, UHS shares have catapulted by 56.1% year-to-date, paralleling the industry’s firm growth trend.