Cardiovascular Systems, Inc. delivered earnings per share of 2 cents in third-quarter fiscal 2019 compared with the year-ago earnings of a penny.
The reported figure beat the Zacks Consensus Estimate of a loss of 4 cents.
Net Sales
Cardiovascular Systems’ revenues of $63.3 million in the fiscal third quarter marks a 13.9% year-over-year increase. Meanwhile, the top line matched the Zacks Consensus Estimate.
Segment Details
Coronary device revenues jumped above 24% year over year to $18.2 million. Domestic coronary revenues grew 18%, primarily driven by expanded unit volumes. Meanwhile, peripheral device revenues rose 10% to $45.2 million on a year-over-year basis. Worldwide peripheral unit volume was up 16% while domestically, the metric improved 14%.
Margin
Gross margin in the reported quarter was 80.8%, down 128 basis points (bps) year over year.
Meanwhile, selling, general and administrative (SG&A) expenses rose 9.4% to $41.4 million plus research and development (R&D) expenses escalated 26.6% to $9.3 million. As a result, adjusted operating expenses increased 12.2% to $50.6 million. Operating margin in the reported quarter contracted 8 bps to 0.80%.
Financial Position
The company exited third-quarter fiscal 2019 with cash and cash equivalents of $115.3 million compared with $118.8 million at the end of the fiscal second quarter.
Outlook
Cardiovascular Systems updated its fiscal 2019 guidance. The company has narrowed its revenue expectation to $245-$247 million (the earlier band was $243-$247 million) for fiscal 2019. The current Zacks Consensus Estimate for full-fiscal revenues is pegged at $245.7 million, within but near the lower end of the company's view.
Moreover, the company currently anticipates gross profit to account for 80-81% (past forecast was80%) of revenues in fiscal 2019.
The company might incur net loss of 0.5% to breakeven earnings (previous prediction was net loss of 1-2%) during fiscal 2019. The current Zacks Consensus Estimate is pegged at a loss of 10 cents.
Our Take
Cardiovascular Systems exited third-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 uptick in both Coronary and peripheral device revenues. It is making concerted efforts in product innovation through R&D investments.
On the flip side, Cardiovascular Systems faces cut-throat competition in the niche space.
Zacks Rank and Key Picks
Cardiovascular Systems currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks flaunting solid results this earnings season are Stryker Corporation (SYK - Free Report) , Abbott Laboratories (ABT - Free Report) and CONMED Corporation (CNMD - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stryker delivered first-quarter 2019 adjusted EPS of $1.88, beating the Zacks Consensus Estimate by 2.2%. Meanwhile, revenues of $3.52 billion were in line with the Zacks Consensus Estimate.
Abbott reported first-quarter 2019 adjusted EPS of 63 cents, topping the Zacks Consensus Estimate by 3.3%. Further, first-quarter worldwide sales came in at $7.54 billion, above the consensus estimate of $7.47 billion.
CONMED posted first-quarter 2019 adjusted EPS of 57 cents, exceeding the Zacks Consensus Estimate of 54 cents. Revenues also summed $218.4 million, outshining the consensus mark of $213 million.
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Cardiovascular Systems, Inc. delivered earnings per share of 2 cents in third-quarter fiscal 2019 compared with the year-ago earnings of a penny.
The reported figure beat the Zacks Consensus Estimate of a loss of 4 cents.
Net Sales
Cardiovascular Systems’ revenues of $63.3 million in the fiscal third quarter marks a 13.9% year-over-year increase. Meanwhile, the top line matched the Zacks Consensus Estimate.
Segment Details
Coronary device revenues jumped above 24% year over year to $18.2 million. Domestic coronary revenues grew 18%, primarily driven by expanded unit volumes. Meanwhile, peripheral device revenues rose 10% to $45.2 million on a year-over-year basis. Worldwide peripheral unit volume was up 16% while domestically, the metric improved 14%.
Margin
Gross margin in the reported quarter was 80.8%, down 128 basis points (bps) year over year.
Meanwhile, selling, general and administrative (SG&A) expenses rose 9.4% to $41.4 million plus research and development (R&D) expenses escalated 26.6% to $9.3 million. As a result, adjusted operating expenses increased 12.2% to $50.6 million. Operating margin in the reported quarter contracted 8 bps to 0.80%.
Financial Position
The company exited third-quarter fiscal 2019 with cash and cash equivalents of $115.3 million compared with $118.8 million at the end of the fiscal second quarter.
Outlook
Cardiovascular Systems updated its fiscal 2019 guidance. The company has narrowed its revenue expectation to $245-$247 million (the earlier band was $243-$247 million) for fiscal 2019. The current Zacks Consensus Estimate for full-fiscal revenues is pegged at $245.7 million, within but near the lower end of the company's view.
Moreover, the company currently anticipates gross profit to account for 80-81% (past forecast was80%) of revenues in fiscal 2019.
The company might incur net loss of 0.5% to breakeven earnings (previous prediction was net loss of 1-2%) during fiscal 2019. The current Zacks Consensus Estimate is pegged at a loss of 10 cents.
Our Take
Cardiovascular Systems exited third-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 uptick in both Coronary and peripheral device revenues. It is making concerted efforts in product innovation through R&D investments.
On the flip side, Cardiovascular Systems faces cut-throat competition in the niche space.
Zacks Rank and Key Picks
Cardiovascular Systems currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks flaunting solid results this earnings season are Stryker Corporation (SYK - Free Report) , Abbott Laboratories (ABT - Free Report) and CONMED Corporation (CNMD - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stryker delivered first-quarter 2019 adjusted EPS of $1.88, beating the Zacks Consensus Estimate by 2.2%. Meanwhile, revenues of $3.52 billion were in line with the Zacks Consensus Estimate.
Abbott reported first-quarter 2019 adjusted EPS of 63 cents, topping the Zacks Consensus Estimate by 3.3%. Further, first-quarter worldwide sales came in at $7.54 billion, above the consensus estimate of $7.47 billion.
CONMED posted first-quarter 2019 adjusted EPS of 57 cents, exceeding the Zacks Consensus Estimate of 54 cents. Revenues also summed $218.4 million, outshining the consensus mark of $213 million.
Zacks' Top 10 Stocks for 2019In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year? Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%. See Latest Stocks Today >>
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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