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Cardiovascular Systems' (CSII) Q3 Earnings Top Estimates
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Cardiovascular Systems, Inc. reported a loss of 25 cents per share for third-quarter fiscal 2022, compared to the loss of 15 cents in the prior-year period. The reported loss was narrower than the Zacks Consensus Estimate of a loss of 28 cents.
Net Sales
Cardiovascular Systems’ revenues of $56.2 million dropped 11.1% year over year. The top line missed the Zacks Consensus Estimate by 2%.
Segment Details
In the quarter under review, worldwide coronary revenues fell 7% to $18.9 million sequentially.
In the United States, coronary revenues declined 12% year over year. Outside the United States, coronary revenues rose 17% year over year to $4.2 million, led by continued strength in Japan and Europe.
Cardiovascular Systems, Inc. Price, Consensus and EPS Surprise
Worldwide peripheral revenues plunged 4% year over year to $37.4 million. In the United States, peripheral revenues contracted 12% year over year.
Margins
Gross margin in the reported quarter was 73.7%, down 416 basis points (bps) year over year on a 5.5% rise in the cost of goods sold.
Selling, general and administrative expenses rose 0.6% to $41.7 million. Research and development expenses contracted 31.2% to $9.1 million.
Adjusted operating expenses fell 7.1% to $50.7 million. Adjusted operating loss in the reported quarter was $9.3 million compared with the adjusted operating loss of $5.3 million in the year-ago period.
Financial Position
The company exited the third quarter of fiscal 2022 with cash and cash equivalents of $66.9 million compared with $71.1 million at the end of the fiscal second quarter.
2022 Guidance
Cardiovascular Systems’ management continues to forecast a gradual improvement in revenues throughout the fiscal fourth quarter. However, the pace of this recovery is slower than anticipated. As a result, Cardiovascular Systems now expects revenue for fiscal year 2022 to be at the low end of the previously shared range.
Revenues are expected in the band of $235 million to $245 million. The Zacks Consensus Estimate for the same is currently pegged at $237.1 million.
The company expects net loss in the range of 15% to 16% of revenues. The Zacks Consensus Estimate for the metric is pegged at a loss of 98 cents per share.
Our Take
Cardiovascular Systems’ third quarter of fiscal 2022 loss per share was narrower than the year-ago figure and the consensus mark. The company’s support devices continue to gain traction and drive incremental revenues. Demand for the new Scoreflex NC scoring balloon looks encouraging. Outside the United States, the company continues to deliver robust growth with expansion across major geographies and opening new accounts in areas like Japan and Europe. This momentum is expected to continue as the adoption of coronary and peripheral atherectomy continues to gain traction in international markets.
On the flip side, the year-over-year decline in revenues is discouraging. Peripheral revenues registered a significant decline in the reported quarter, domestically and internationally. The company’s domestic business was impacted by lower procedure volumes due to hospital capacity issues and staffing shortages induced by the recent COVID-19 resurgence. The company also lowered its 2022 revenue outlook, raising further apprehension.
Zacks Rank and Key Picks
Cardiovascular Systems currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are UnitedHealth Group Incorporated (UNH - Free Report) , Medpace Holdings, Inc. (MEDP - Free Report) and Alkermes plc (ALKS - Free Report) .
UnitedHealth, having a Zacks Rank #2 (Buy), reported first-quarter 2022 adjusted earnings per share (EPS) of $5.49, which beat the Zacks Consensus Estimate by 1.7%. Revenues of $80.1 billion outpaced the consensus mark by 14.2%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
UnitedHealth has an estimated long-term growth rate of 14.8%. UNH’s earnings surpassed estimates in the trailing four quarters, the average surprise being 3.7%.
Medpace reported first-quarter 2022 adjusted EPS of $1.69, which surpassed the Zacks Consensus Estimate by 34.1%. Revenues of $330.9 million outpaced the Zacks Consensus Estimate by 1.1%. It currently has a Zacks Rank #2.
Medpace has a historical growth rate of 27.3%. MEDP’s earnings surpassed estimates in the trailing four quarters, the average surprise being 17.1%.
Alkermes reported first-quarter 2022 adjusted EPS of 12 cents, which surpassed the Zacks Consensus Estimate of a penny. Revenues of $278.6 million outpaced the Zacks Consensus Estimate by 6.2%. It currently sports a Zacks Rank #1.
Alkermes has an estimated long-term growth rate of 25.1%. ALKS’ earnings surpassed estimates in the trailing four quarters, the average surprise being 350.5%.
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Cardiovascular Systems' (CSII) Q3 Earnings Top Estimates
Cardiovascular Systems, Inc. reported a loss of 25 cents per share for third-quarter fiscal 2022, compared to the loss of 15 cents in the prior-year period. The reported loss was narrower than the Zacks Consensus Estimate of a loss of 28 cents.
Net Sales
Cardiovascular Systems’ revenues of $56.2 million dropped 11.1% year over year. The top line missed the Zacks Consensus Estimate by 2%.
Segment Details
In the quarter under review, worldwide coronary revenues fell 7% to $18.9 million sequentially.
In the United States, coronary revenues declined 12% year over year. Outside the United States, coronary revenues rose 17% year over year to $4.2 million, led by continued strength in Japan and Europe.
Cardiovascular Systems, Inc. Price, Consensus and EPS Surprise
Worldwide peripheral revenues plunged 4% year over year to $37.4 million. In the United States, peripheral revenues contracted 12% year over year.
Margins
Gross margin in the reported quarter was 73.7%, down 416 basis points (bps) year over year on a 5.5% rise in the cost of goods sold.
Selling, general and administrative expenses rose 0.6% to $41.7 million. Research and development expenses contracted 31.2% to $9.1 million.
Adjusted operating expenses fell 7.1% to $50.7 million. Adjusted operating loss in the reported quarter was $9.3 million compared with the adjusted operating loss of $5.3 million in the year-ago period.
Financial Position
The company exited the third quarter of fiscal 2022 with cash and cash equivalents of $66.9 million compared with $71.1 million at the end of the fiscal second quarter.
2022 Guidance
Cardiovascular Systems’ management continues to forecast a gradual improvement in revenues throughout the fiscal fourth quarter. However, the pace of this recovery is slower than anticipated. As a result, Cardiovascular Systems now expects revenue for fiscal year 2022 to be at the low end of the previously shared range.
Revenues are expected in the band of $235 million to $245 million. The Zacks Consensus Estimate for the same is currently pegged at $237.1 million.
The company expects net loss in the range of 15% to 16% of revenues. The Zacks Consensus Estimate for the metric is pegged at a loss of 98 cents per share.
Our Take
Cardiovascular Systems’ third quarter of fiscal 2022 loss per share was narrower than the year-ago figure and the consensus mark. The company’s support devices continue to gain traction and drive incremental revenues. Demand for the new Scoreflex NC scoring balloon looks encouraging. Outside the United States, the company continues to deliver robust growth with expansion across major geographies and opening new accounts in areas like Japan and Europe. This momentum is expected to continue as the adoption of coronary and peripheral atherectomy continues to gain traction in international markets.
On the flip side, the year-over-year decline in revenues is discouraging. Peripheral revenues registered a significant decline in the reported quarter, domestically and internationally. The company’s domestic business was impacted by lower procedure volumes due to hospital capacity issues and staffing shortages induced by the recent COVID-19 resurgence. The company also lowered its 2022 revenue outlook, raising further apprehension.
Zacks Rank and Key Picks
Cardiovascular Systems currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are UnitedHealth Group Incorporated (UNH - Free Report) , Medpace Holdings, Inc. (MEDP - Free Report) and Alkermes plc (ALKS - Free Report) .
UnitedHealth, having a Zacks Rank #2 (Buy), reported first-quarter 2022 adjusted earnings per share (EPS) of $5.49, which beat the Zacks Consensus Estimate by 1.7%. Revenues of $80.1 billion outpaced the consensus mark by 14.2%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
UnitedHealth has an estimated long-term growth rate of 14.8%. UNH’s earnings surpassed estimates in the trailing four quarters, the average surprise being 3.7%.
Medpace reported first-quarter 2022 adjusted EPS of $1.69, which surpassed the Zacks Consensus Estimate by 34.1%. Revenues of $330.9 million outpaced the Zacks Consensus Estimate by 1.1%. It currently has a Zacks Rank #2.
Medpace has a historical growth rate of 27.3%. MEDP’s earnings surpassed estimates in the trailing four quarters, the average surprise being 17.1%.
Alkermes reported first-quarter 2022 adjusted EPS of 12 cents, which surpassed the Zacks Consensus Estimate of a penny. Revenues of $278.6 million outpaced the Zacks Consensus Estimate by 6.2%. It currently sports a Zacks Rank #1.
Alkermes has an estimated long-term growth rate of 25.1%. ALKS’ earnings surpassed estimates in the trailing four quarters, the average surprise being 350.5%.