What happened
Shares of Zynex (ZYXI -2.11%), a medical devices manufacturer, are up by 12.1% as of 12:22 p.m. EDT on Friday, after the company announced on Thursday that it had experienced an increase in orders during the second quarter. As a result, Zynex revised its second-quarter and full-year revenue guidance.
So what
The demand for some of Zynex's medical devices -- which include devices for pain management and cardiac monitoring -- grew during the second quarter as many states started relaxing social distancing measures and reopening their economies. Specifically, the company said that it experienced a 37% increase in orders compared to the year-ago period. What's more, Zynex expects that trend to continue during the third quarter. The company had previously said that its revenue for the second quarter would come in between $17.5 million and $18 million.
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Now Zynex expects its top line to be in the range of $18.9 million to $19.4 million. Note that on average, analysts expect the company's revenue to be $17.98 million for the quarter. Further, Zynex increased its full-year revenue estimates to between $80 million and $85 million, up from between $78 million and $83 million. This would represent revenue growth of between 76% and 87% over fiscal 2019.
Now what
Zynex has been performing well all year long, even as many other medical device companies have struggled amid the ongoing outbreak: The company's stock is up by 267.5% year to date. Given its latest business update, the healthcare company will likely continue on its upward trajectory at least until the end of the year.
