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Cutera (CUTR) Q4 Earnings Beat, COVID-19 Hurts Top-Line Growth

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Cutera (CUTR - Free Report) reported fourth-quarter 2020 adjusted earnings of 31 cents per share, which comfortably surpassed the Zacks Consensus Estimate of a loss of 3 cents. Moreover, the figure surged 121.4% year over year.

Revenues of $49.9 million fell 3.6% year over year but beat the consensus mark by 14.8%. The year-over-year decline was primarily attributed to lower levels of capital equipment purchases due to the coronavirus-induced disruptions. Capital Equipment revenues of $30.1 million declined 26% year over year.

Moreover, geographically, U.S. revenues fell 32.7% year over year to $21.1 million. International revenues surged 40.7% to $28.9 million.

Quarter Details

Recurring revenues, defined as the combination of Service, Skincare and Consumable product categories, were $19.8 million, up 80% year over year.

Skincare revenues jumped 362.5% to $10.6 million. Consumables increased 19.1% year over year to $3 million, driven by the continued recovery of energy-based treatment volumes.

Cutera, Inc. Price, Consensus and EPS Surprise


Cutera, Inc. Price, Consensus and EPS Surprise

Cutera, Inc. price-consensus-eps-surprise-chart | Cutera, Inc. Quote


Moreover, Service revenues were up 0.3% to $6.2 million.

Product revenues decline 4.1% year over year to $43.7 million.

Non-GAAP gross profit declined 3.8% year over year to $28.3 million. Gross margin was unchanged at 56.7%.

Research & development, and sales & marketing expenses decreased 7.5% and 26% year over year to $3.7 million and $13.2 million, respectively.

However, general & administration expenses increased 22.2% year over year to $6.7 million.

Operating income was $4.7 million, up 124.8% year over year. Operating margin expanded 540 basis points to 9.4% in the reported quarter.

Balance Sheet

As of Dec 31, 2020, cash and cash equivalents were $47 million.

Net cash provided by operating activities in the fourth quarter was $3.8 million compared with $4 million at the end of the year-ago quarter.

Zacks Rank & Stocks to Consider

Cutera currently has a Zacks Rank #4 (Sell).

Better-ranked stocks in the broader technology sector are 3D Systems (DDD - Free Report) , Zoom (ZM - Free Report) and CrowdStrike Holdings (CRWD - Free Report) . All three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

3D Systems is set to report its quarterly results on Feb 24. Zoom and CrowdStrike are set to report the same on Mar 1 and 16, respectively.

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