Cardiovascular Systems, Inc. delivered earnings per share of 1 cent in second-quarter fiscal 2019 against the year-ago loss of a penny.
The reported figure exceeded the Zacks Consensus Estimate of a loss of 4 cents.
Net Sales
Cardiovascular Systems recorded revenues of $60.2 million in the fiscal second quarter, marking a 14.4% year-over-year increase. Meanwhile, the top line matched the Zacks Consensus Estimate.
Segment Details
Coronary device revenues jumped above 19% year over year to $16 million. Domestic coronary revenues grew 13%, primarily driven by expanded unit volumes. Meanwhile, peripheral device revenues rose 13% to $44.2 million on a year-over-year basis. Strong sales of peripheral atherectomy devices in the United States were the primary driver of peripheral revenues.
Margin
Gross margin in the reported quarter was 80.9%, down 101 basis points (bps) year over year.
Meanwhile, selling, general and administrative (SG&A) expenses rose 11.1% to $41.1 million plus research and development (R&D) expenses were up 13.2% to $7.2 million. As a result, adjusted operating expenses increased 11.4% to $48.3 million.
Operating profit came in at around $384 million against loss from operations of $275 million in the year-ago period.
Financial Position
The company exited second-quarter fiscal 2019 with cash and cash equivalents of $118.8 million compared with $113.4 million at the end of fiscal 2018.
Outlook
Cardiovascular Systems updated its fiscal 2019 guidance. The company expects revenues in the range of $243-$247 million for fiscal 2019, lower than the earlier prediction of $240-$250 million. The current Zacks Consensus Estimate for fiscal 2019 revenues is pegged at $244.7 million within but near the lower end of the company's view.
Moreover, the company expects gross profit to account for 80% of revenues in fiscal 2019.
The company still anticipates to incur net loss of 1-2% in revenues during fiscal 2019. The current Zacks Consensus Estimate is pegged at a loss of 9 cents.
Our Take
Cardiovascular Systems exited second-quarter fiscal 2019 with earnings ahead of the Zacks Consensus Estimate and revenues in line with the same. The company witnessed a year-over-year increase in both Coronary and peripheral device segments. It is putting efforts in product innovation through R&D investments. The commercial launch of orbital atherectomy in international markets strongly contributed to growth of coronary and peripheral businesses in the reported quarter.
On the flip side, Cardiovascular Systems faces cut-throat competition in the niche space.
Zacks Rank & Key Picks
Cardiovascular Systems has a Zacks Rank #2 (Buy). A few other top-ranked MedTech stocks flaunting solid results in the respective quarters are Varian Medical Systems , Surmodics, Inc. (SRDX - Free Report) and AngioDynamics (ANGO - Free Report) .
Varian’s first-quarter fiscal 2019 adjusted EPS came in at $1.06, in line with the Zacks Consensus Estimate. Revenues of $741 million outpaced the consensus mark of $717.9 million. The stock carries a Zacks Rank of 2.
Surmodics reported adjusted earnings per share (EPS) of 12 cents in first-quarter fiscal 2019, comparing favorably with the Zacks Consensus Estimate of a loss of a penny. Earnings rose 20% from the year-ago quarter’s figure. The stock is a Zacks #2 Ranked player.
AngioDynamics’ second-quarter fiscal 2019 adjusted EPS of 22 cents surpassed the Zacks Consensus Estimate by a penny. Revenues totaled $91.5 million, which outshined the consensus estimate by 2.9%. The stock sports a Zacks Rank #1 (Strong Buy).You can see the complete list of today’s Zacks #1 Rank stocks here.
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Cardiovascular Systems, Inc. delivered earnings per share of 1 cent in second-quarter fiscal 2019 against the year-ago loss of a penny.
The reported figure exceeded the Zacks Consensus Estimate of a loss of 4 cents.
Net Sales
Cardiovascular Systems recorded revenues of $60.2 million in the fiscal second quarter, marking a 14.4% year-over-year increase. Meanwhile, the top line matched the Zacks Consensus Estimate.
Segment Details
Coronary device revenues jumped above 19% year over year to $16 million. Domestic coronary revenues grew 13%, primarily driven by expanded unit volumes. Meanwhile, peripheral device revenues rose 13% to $44.2 million on a year-over-year basis. Strong sales of peripheral atherectomy devices in the United States were the primary driver of peripheral revenues.
Margin
Gross margin in the reported quarter was 80.9%, down 101 basis points (bps) year over year.
Meanwhile, selling, general and administrative (SG&A) expenses rose 11.1% to $41.1 million plus research and development (R&D) expenses were up 13.2% to $7.2 million. As a result, adjusted operating expenses increased 11.4% to $48.3 million.
Operating profit came in at around $384 million against loss from operations of $275 million in the year-ago period.
Financial Position
The company exited second-quarter fiscal 2019 with cash and cash equivalents of $118.8 million compared with $113.4 million at the end of fiscal 2018.
Outlook
Cardiovascular Systems updated its fiscal 2019 guidance. The company expects revenues in the range of $243-$247 million for fiscal 2019, lower than the earlier prediction of $240-$250 million. The current Zacks Consensus Estimate for fiscal 2019 revenues is pegged at $244.7 million within but near the lower end of the company's view.
Moreover, the company expects gross profit to account for 80% of revenues in fiscal 2019.
The company still anticipates to incur net loss of 1-2% in revenues during fiscal 2019. The current Zacks Consensus Estimate is pegged at a loss of 9 cents.
Our Take
Cardiovascular Systems exited second-quarter fiscal 2019 with earnings ahead of the Zacks Consensus Estimate and revenues in line with the same. The company witnessed a year-over-year increase in both Coronary and peripheral device segments. It is putting efforts in product innovation through R&D investments. The commercial launch of orbital atherectomy in international markets strongly contributed to growth of coronary and peripheral businesses in the reported quarter.
On the flip side, Cardiovascular Systems faces cut-throat competition in the niche space.
Zacks Rank & Key Picks
Cardiovascular Systems has a Zacks Rank #2 (Buy). A few other top-ranked MedTech stocks flaunting solid results in the respective quarters are Varian Medical Systems , Surmodics, Inc. (SRDX - Free Report) and AngioDynamics (ANGO - Free Report) .
Varian’s first-quarter fiscal 2019 adjusted EPS came in at $1.06, in line with the Zacks Consensus Estimate. Revenues of $741 million outpaced the consensus mark of $717.9 million. The stock carries a Zacks Rank of 2.
Surmodics reported adjusted earnings per share (EPS) of 12 cents in first-quarter fiscal 2019, comparing favorably with the Zacks Consensus Estimate of a loss of a penny. Earnings rose 20% from the year-ago quarter’s figure. The stock is a Zacks #2 Ranked player.
AngioDynamics’ second-quarter fiscal 2019 adjusted EPS of 22 cents surpassed the Zacks Consensus Estimate by a penny. Revenues totaled $91.5 million, which outshined the consensus estimate by 2.9%. The stock sports a Zacks Rank #1 (Strong Buy).You can see the complete list of today’s Zacks #1 Rank stocks here.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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