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Vocera (VCRA) Beats Q4 Earnings Estimates on Top-Line Growth
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Vocera Communications, Inc. reported healthy fourth-quarter 2021 results with both the bottom line and the top line surpassing the respective Zacks Consensus Estimate. Higher revenues, software strength, and broad-based growth across its business supported by dynamic business fundamentals drove Vocera’s quarterly performance.
Bottom Line
On a GAAP basis, net loss in the December quarter was $0.6 million or a loss of 2 cents per share against net income of $0.1 million or breakeven in the year-ago quarter. The year-over-year decline despite top-line growth was primarily attributable to higher operating expenses.
On a non-GAAP basis, quarterly net income was $11.5 million or 29 cents per share compared with $9.7 million or 28 cents per share in the prior-year quarter. The bottom line beat the Zacks Consensus Estimate by 12 cents.
Vocera Communications, Inc. Price, Consensus and EPS Surprise
Quarterly revenues came in at $65.8 million compared with $56.6 million in the year-ago quarter. The 16.2% year-over-year increase was primarily driven by higher product and service revenues coupled with major hospital system wins, thereby contributing to software growth. Broad-based growth across its business fueled by its market leadership position acted as a significant tailwind. The top line surpassed the consensus estimate of $64 million.
Product revenues rose 13.3% to $34.3 million, mainly due to an increase in the number of software licenses delivered to customers, partially offset by lower device sales. Service revenues aggregated $31.5 million compared with $26.3 million in the year-ago quarter as a result of higher implementation services and software maintenance contracts along with higher subscription revenues.
Other Details
Total operating expenses were $44.6 million compared with $35.7 million in the prior-year quarter, mainly due to higher administrative and sales and marketing expenses. Operating income decreased to $0.2 million from $2.8 million. Gross profit came in at $44.7 million compared with $38.6 million in the prior-year quarter with respective margins of 68% and 68.1%. Adjusted EBITDA totaled $16.2 million compared with $13.1 million in the prior-year period. As of Dec 31, 2021, the company had $96.3 million of cash and cash equivalents with $148.9 million of total current liabilities.
Other Significant Developments
Subsequent to the end of the quarter, Vocera has inked a deal, under which it will be acquired by Stryker Corporation (SYK - Free Report) for $79.25 per share. Headquartered in Kalamazoo, MI, Stryker operates as a medical technology company. It offers innovative products and services in Orthopedics, Medical and Surgical, and Neurotechnology and Spine that help improve patient outcomes. The transaction is likely to be completed in the first quarter of 2022.
Vocera brings an innovative portfolio to Stryker’s Medical division to address the increasing need for hospitals to connect caregivers and data-generating medical devices. Its software competency, hardware solutions and ability to enable remote communication between patients and their families will complement Stryker’s Advanced Digital Healthcare offerings. Vocera will help Stryker accelerate its digital goals to improve the lives of caregivers and patients.
Zacks Rank & Other Stocks to Consider
Vocera sports a Zacks Rank #1 (Strong Buy) at present.
Viavi delivered a modest earnings surprise of 15.6%, on average, in the trailing four quarters. Earnings estimates for the current year for the stock have moved up 6% since February 2021, while that for the next year is up 4.6%.
Viavi boasts a comprehensive product portfolio that offers end-to-end network visibility and analytics that help build, test, certify, maintain and optimize complex physical and virtual networks. Its wireless and fiber test solutions are in the early stages of a multi-year investment cycle fueled by the transition of OEMs and service providers to superfast 5G networks. Viavi expects growth to be driven by the secular demand for 5G wireless, fiber and 3D sensing.
Arista Networks, Inc. (ANET - Free Report) carries a Zacks Rank #2. It has a long-term earnings growth expectation of 16.7% and delivered a modest earnings surprise of 6%, on average, in the trailing four quarters. Earnings estimates for the current year have moved up 10.7% since February 2021, while that for the next year is up 24.7%.
Arista continues to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experience. Over the past year, Arista has gained 54.2%.
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Vocera (VCRA) Beats Q4 Earnings Estimates on Top-Line Growth
Vocera Communications, Inc. reported healthy fourth-quarter 2021 results with both the bottom line and the top line surpassing the respective Zacks Consensus Estimate. Higher revenues, software strength, and broad-based growth across its business supported by dynamic business fundamentals drove Vocera’s quarterly performance.
Bottom Line
On a GAAP basis, net loss in the December quarter was $0.6 million or a loss of 2 cents per share against net income of $0.1 million or breakeven in the year-ago quarter. The year-over-year decline despite top-line growth was primarily attributable to higher operating expenses.
On a non-GAAP basis, quarterly net income was $11.5 million or 29 cents per share compared with $9.7 million or 28 cents per share in the prior-year quarter. The bottom line beat the Zacks Consensus Estimate by 12 cents.
Vocera Communications, Inc. Price, Consensus and EPS Surprise
Vocera Communications, Inc. price-consensus-eps-surprise-chart | Vocera Communications, Inc. Quote
Revenues
Quarterly revenues came in at $65.8 million compared with $56.6 million in the year-ago quarter. The 16.2% year-over-year increase was primarily driven by higher product and service revenues coupled with major hospital system wins, thereby contributing to software growth. Broad-based growth across its business fueled by its market leadership position acted as a significant tailwind. The top line surpassed the consensus estimate of $64 million.
Product revenues rose 13.3% to $34.3 million, mainly due to an increase in the number of software licenses delivered to customers, partially offset by lower device sales. Service revenues aggregated $31.5 million compared with $26.3 million in the year-ago quarter as a result of higher implementation services and software maintenance contracts along with higher subscription revenues.
Other Details
Total operating expenses were $44.6 million compared with $35.7 million in the prior-year quarter, mainly due to higher administrative and sales and marketing expenses. Operating income decreased to $0.2 million from $2.8 million. Gross profit came in at $44.7 million compared with $38.6 million in the prior-year quarter with respective margins of 68% and 68.1%. Adjusted EBITDA totaled $16.2 million compared with $13.1 million in the prior-year period. As of Dec 31, 2021, the company had $96.3 million of cash and cash equivalents with $148.9 million of total current liabilities.
Other Significant Developments
Subsequent to the end of the quarter, Vocera has inked a deal, under which it will be acquired by Stryker Corporation (SYK - Free Report) for $79.25 per share. Headquartered in Kalamazoo, MI, Stryker operates as a medical technology company. It offers innovative products and services in Orthopedics, Medical and Surgical, and Neurotechnology and Spine that help improve patient outcomes. The transaction is likely to be completed in the first quarter of 2022.
Vocera brings an innovative portfolio to Stryker’s Medical division to address the increasing need for hospitals to connect caregivers and data-generating medical devices. Its software competency, hardware solutions and ability to enable remote communication between patients and their families will complement Stryker’s Advanced Digital Healthcare offerings. Vocera will help Stryker accelerate its digital goals to improve the lives of caregivers and patients.
Zacks Rank & Other Stocks to Consider
Vocera sports a Zacks Rank #1 (Strong Buy) at present.
Viavi Solutions Inc. (VIAV - Free Report) , carrying a Zacks Rank #2 (Buy), is another solid pick for investors. You can see the complete list of today’s Zacks #1 Rank stocks here.
Viavi delivered a modest earnings surprise of 15.6%, on average, in the trailing four quarters. Earnings estimates for the current year for the stock have moved up 6% since February 2021, while that for the next year is up 4.6%.
Viavi boasts a comprehensive product portfolio that offers end-to-end network visibility and analytics that help build, test, certify, maintain and optimize complex physical and virtual networks. Its wireless and fiber test solutions are in the early stages of a multi-year investment cycle fueled by the transition of OEMs and service providers to superfast 5G networks. Viavi expects growth to be driven by the secular demand for 5G wireless, fiber and 3D sensing.
Arista Networks, Inc. (ANET - Free Report) carries a Zacks Rank #2. It has a long-term earnings growth expectation of 16.7% and delivered a modest earnings surprise of 6%, on average, in the trailing four quarters. Earnings estimates for the current year have moved up 10.7% since February 2021, while that for the next year is up 24.7%.
Arista continues to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experience. Over the past year, Arista has gained 54.2%.