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Cardiovascular Systems (CSII) Q1 Loss Wider Than Expected
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Cardiovascular Systems, Inc. reported a loss of 22 cents per share for first-quarter fiscal 2022, wider than a loss per share of 5 cents in the prior-year period. The reported loss was also wider than the Zacks Consensus Estimate of a loss of 10 cents.
Net Sales
Cardiovascular Systems’ revenues of $58.4 million dropped 3.6% year over year. The top line missed the Zacks Consensus Estimate by 7.8%.
Segment Details
In the quarter under review, worldwide coronary revenues grew 10% to $19.4 million. In the United States, coronary revenues increased 2% year over year. Outside the United States, coronary revenues increased to $3.2 million, driven by continued strength in Japan, combined with the growing adoption of coronary Orbital Atherectomy System (OAS) in Europe.
Cardiovascular Systems, Inc. Price, Consensus and EPS Surprise
Worldwide peripheral revenues plunged 9% year over year to $39 million. In the United States, peripheral revenues decreased 9%. Device revenues at hospitals decreased 16%. Device revenues in OBLs decreased about 1%. Peripheral support product revenues increased to $1.4 million.
Margin
Gross margin in the reported quarter was 75.5%, down 376 basis points (bps) year over year on a 13.9% rise in the cost of goods sold.
Selling, general and administrative expenses were up 3.9% to $41.9 million. Research and development expenses rose 10.7% to $10 million.
Adjusted operating expenses rose 5.1% to $51.9 million. Operating loss in the reported quarter was $7.8 million compared with an operating loss of $1.4 million in the year-ago period.
Financial Position
The company exited the fiscal first quarter with cash and cash equivalents of $66.9 million, compared with $71.1 million at the end of fiscal 2021.
2022 Guidance
Cardiovascular Systems has updated its financial guidance for fiscal 2022.
Revenues are expected in the band of $265 million to $285 million (down from the earlier-projected band of $295-$305 million), indicating growth of 2% to 10% (14% to 18%) from fiscal 2021. The Zacks Consensus Estimate for the same is currently pegged at $295.9 million.
The company expects net loss in the range of 5% to 8% of revenues (2-3% of revenues). The Zacks Consensus Estimate is pegged at a loss of 17 cents per share.
Our Take
Cardiovascular Systems’ first quarter of fiscal 2021 loss was wider than the year-ago figure and the consensus mark. The company’s revenues too lagged the Zacks Consensus Estimate and dropped on a year-over-year basis. Coronary franchise registered strong performance globally on continued strength in Japan and the growing adoption of coronary OAS in Europe.
Peripheral revenues registered a significant decline in the reported quarter. According to the company, the resurgence of COVID-19 and the related staffing shortages disrupted referral patterns and had the largest impact on more elective procedures like treatment with lower acuity peripheral claudication. Cardiovascular Systems noted that the severity and duration of the COVID-19 impact were greater than expected and more pronounced due to the timing and geographic location of the Delta surge.
The company has slashed its fiscal 2022 revenue guidance. A tough competitive landscape and the company’s failure to expand business overseas are the other headwinds.
Zacks Rank and Key Picks
The company currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the broader medical space that have announced quarterly results are Medpace Holdings, Inc. (MEDP - Free Report) , Thermo Fisher Scientific Inc. (TMO - Free Report) and West Pharmaceutical Services, Inc. (WST - Free Report) .
Medpace, currently carrying a Zacks Rank #1 (Strong Buy), reported third-quarter 2021 adjusted earnings per share (EPS) of $1.29, surpassing the Zacks Consensus Estimate by 20.6%. Revenues of $295.57 million beat the Zacks Consensus Estimate by 1.2%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Thermo Fisher Scientific reported third-quarter 2021 adjusted EPS of $5.76, which surpassed the Zacks Consensus Estimate by 23.3%. Revenues of $9.33 billion outpaced the Zacks Consensus Estimate by 12%. It currently carries a Zacks Rank #2 (Buy).
West Pharmaceutical Services, carrying a Zacks Rank #2, reported third-quarter 2021 adjusted EPS of $2.06, which beat the Zacks Consensus Estimate by 13.2%. Revenues of $706.5 million outpaced the consensus mark by 3.2%.
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Cardiovascular Systems (CSII) Q1 Loss Wider Than Expected
Cardiovascular Systems, Inc. reported a loss of 22 cents per share for first-quarter fiscal 2022, wider than a loss per share of 5 cents in the prior-year period. The reported loss was also wider than the Zacks Consensus Estimate of a loss of 10 cents.
Net Sales
Cardiovascular Systems’ revenues of $58.4 million dropped 3.6% year over year. The top line missed the Zacks Consensus Estimate by 7.8%.
Segment Details
In the quarter under review, worldwide coronary revenues grew 10% to $19.4 million. In the United States, coronary revenues increased 2% year over year. Outside the United States, coronary revenues increased to $3.2 million, driven by continued strength in Japan, combined with the growing adoption of coronary Orbital Atherectomy System (OAS) in Europe.
Cardiovascular Systems, Inc. Price, Consensus and EPS Surprise
Cardiovascular Systems, Inc. price-consensus-eps-surprise-chart | Cardiovascular Systems, Inc. Quote
Worldwide peripheral revenues plunged 9% year over year to $39 million. In the United States, peripheral revenues decreased 9%. Device revenues at hospitals decreased 16%. Device revenues in OBLs decreased about 1%. Peripheral support product revenues increased to $1.4 million.
Margin
Gross margin in the reported quarter was 75.5%, down 376 basis points (bps) year over year on a 13.9% rise in the cost of goods sold.
Selling, general and administrative expenses were up 3.9% to $41.9 million. Research and development expenses rose 10.7% to $10 million.
Adjusted operating expenses rose 5.1% to $51.9 million. Operating loss in the reported quarter was $7.8 million compared with an operating loss of $1.4 million in the year-ago period.
Financial Position
The company exited the fiscal first quarter with cash and cash equivalents of $66.9 million, compared with $71.1 million at the end of fiscal 2021.
2022 Guidance
Cardiovascular Systems has updated its financial guidance for fiscal 2022.
Revenues are expected in the band of $265 million to $285 million (down from the earlier-projected band of $295-$305 million), indicating growth of 2% to 10% (14% to 18%) from fiscal 2021. The Zacks Consensus Estimate for the same is currently pegged at $295.9 million.
The company expects net loss in the range of 5% to 8% of revenues (2-3% of revenues). The Zacks Consensus Estimate is pegged at a loss of 17 cents per share.
Our Take
Cardiovascular Systems’ first quarter of fiscal 2021 loss was wider than the year-ago figure and the consensus mark. The company’s revenues too lagged the Zacks Consensus Estimate and dropped on a year-over-year basis. Coronary franchise registered strong performance globally on continued strength in Japan and the growing adoption of coronary OAS in Europe.
Peripheral revenues registered a significant decline in the reported quarter. According to the company, the resurgence of COVID-19 and the related staffing shortages disrupted referral patterns and had the largest impact on more elective procedures like treatment with lower acuity peripheral claudication. Cardiovascular Systems noted that the severity and duration of the COVID-19 impact were greater than expected and more pronounced due to the timing and geographic location of the Delta surge.
The company has slashed its fiscal 2022 revenue guidance. A tough competitive landscape and the company’s failure to expand business overseas are the other headwinds.
Zacks Rank and Key Picks
The company currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the broader medical space that have announced quarterly results are Medpace Holdings, Inc. (MEDP - Free Report) , Thermo Fisher Scientific Inc. (TMO - Free Report) and West Pharmaceutical Services, Inc. (WST - Free Report) .
Medpace, currently carrying a Zacks Rank #1 (Strong Buy), reported third-quarter 2021 adjusted earnings per share (EPS) of $1.29, surpassing the Zacks Consensus Estimate by 20.6%. Revenues of $295.57 million beat the Zacks Consensus Estimate by 1.2%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Thermo Fisher Scientific reported third-quarter 2021 adjusted EPS of $5.76, which surpassed the Zacks Consensus Estimate by 23.3%. Revenues of $9.33 billion outpaced the Zacks Consensus Estimate by 12%. It currently carries a Zacks Rank #2 (Buy).
West Pharmaceutical Services, carrying a Zacks Rank #2, reported third-quarter 2021 adjusted EPS of $2.06, which beat the Zacks Consensus Estimate by 13.2%. Revenues of $706.5 million outpaced the consensus mark by 3.2%.