Progressive Care Inc. (OTCMKTS:RXMD) Breakout Rally Driven by Breakout Growth

The action right now in shares of Progressive Care Inc. (OTCMKTS:RXMD) betrays a newfound sense of confidence in the company’s ability to execute. The stock is up as much as 130% this month, and volume has been rising during the advance – which is an excellent signal suggestive of an expanding base of investment capital powering the movement.


What’s been driving the action? It’s been a meat and potatoes story right now – growth and forward outlook.


Recently, the company posted its Q3 data covering things through September, which showed consolidated quarterly year-over-year Revenue Growth of 91% to $10.14 million, gross margins expanding to 24.4% (versus Q2 22.7%, Q1 19.8%), and gross profit up 128% year-over-year to $2.47 million.


Management commentary reflected this stellar vibe: “Q3 set new records across basically all metrics. We saw accelerating growth in sales and prescriptions while continuing our strong multi-quarter trends of falling costs and expanding gross margins. Beyond the numbers, we are seeing a major positive impact from our recent Family Physicians Rx acquisition, and the Company is firing on all cylinders post-integration. Ultimately, this creates a very favorable backdrop for continued aggressive expansion in the months and quarters ahead as we prepare to launch several powerful new initiatives in Q4 and 2020.”


Okay, but, you might say, will Q4 keep up that torrid pace?


So far, the answer appears to be a big fat “Yes!”, as the company just put out an update on another month of exceptional growth and expanding margins. October sales and prescriptions filled set a new record performance pace for Q4 results.


The CEO, S. Parikh Mars, said:  “The annualized pace we set in October equates to new records across the board as we continue to see broad-based top-line expansion on improving margins. Our $3.4 million in overall sales for October is an understatement because it leaves out the cash flows we took in during the month related to third-party billing activity. With all factors included, the number of gross billing would be closer to $4.2 million. And our 46k prescriptions filled puts Q4 on pace to handily supass our breakout Q3 performance already. Execution continues to be tremendous, and I am very proud of our talented and dedicated team.”

According to that release, the Company achieved over $3.4 million in overall October sales (not including an additional $800,000 third-party related billing activity), representing 78% annual growth in sales compared to October 2018, and 10% monthly growth in sales on a sequential monthly basis. The Company is also excited to report over 46,000 in filled prescriptions during the month, representing a 48% annual growth rate, and a 12% sequential monthly growth rate. In addition, the Company continues to see expanding bottom-line results, with gross margins tracking over 24% for October operations.

Sometimes, it isn’t mysterious how the market works. Sometimes, it’s pretty darn simple: if you do a really good job running a business, your business becomes much more valuable. Right now, that continues to be the story for Progressive Care Inc. (OTCMKTS:RXMD).


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