Conceptus, Inc.

Company Description

Concept us makes a proprietary birth control product for women called Essure. The Essure procedure is permanent, done with out any incisions, and right in the doctor's office. The procedure is available in the Americas, Europe, Australia, and the Middle East.

Crushed Estimates

The company reported third-quarter results on Oct 21st that included a 29% increase in sales, to $34.2 million. Conceptus was expecting between $32 and $33.5 million in sales.

Net income more than tripled to $6.2 million, up from $2.0 million in the same period last year. This equated to an adjusted EPS pf 24 cents, well above the 9 cents analysts were expecting.

Analysts React

Since Conceptus reported its third consecutive earnings surprise, 8 of 9 covering analysts submitted revised full-year estimates, all higher than the previous submission.

Currently the Zacks Consensus Estimate for this year is 18 cents, up from 13 cents. Next year's forecasts are averaging 58 cents up from 48 cents, after 17 revisions by 9 analysts.

Compare these figures to the 1 penny that the company earned last year.

Aqcuisition Completed

Part of the strong quarter was due to the Oct 5 acquisition of Ovion intellectual property from American Medical Systems Holdings, Inc. Conceptus will no longer have to make royalty payments to the company now that it owns the intellectual property.

The Chart

Below you can see that reaction the market had to the October 5th acquisition. Shares surged on the news. The stock has retraced since the earnings report in a weak market. Take a look at the chart below.