It has been about a month since the last earnings report for Cardiovascular Systems . Shares have lost about 18.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Cardiovascular Systems due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Cardiovascular Systems Q4 Earnings Miss Estimates
Cardiovascular Systems reported a loss of 25 cents per share for fourth-quarter fiscal 2022 compared with a loss of 14 cents in the prior-year period. The reported loss was wider than the Zacks Consensus Estimate of a loss of 22 cents.
For the full year, the company reported a loss of 94 cents per share, which compared unfavorably with a loss of 35 cents per share in the year-ago period.
Net Sales
Cardiovascular Systems’ revenues of $62.5 million dropped 11.9% year over year. The top line also missed the Zacks Consensus Estimate by 0.6%. According to the company, despite the headwinds caused by labor and contrast shortages, it reported sequential acceleration in sales.
Fiscal 2022 revenues were $236.2 million, down 8.8% from fiscal 2022.
Segment Details
In the quarter under review, worldwide coronary revenues decreased 13.4% year over year to $21.8 million.
On a sequential basis, in the United States, coronary revenues increased 16%, led by 11% growth in units sold. Coronary support products increased 37%. Outside the United States, coronary revenues increased 14% sequentially, as a result of continued strength in Japan, combined with the successful launch of Coronary OAS in Europe.
Worldwide peripheral revenues plunged 14.7% year over year in the quarter to $40.7 million.
On a sequential basis, fourth quarter worldwide peripheral revenues increased 9%. In the United States, peripheral franchise revenues increased 9%, led by a 27% increase in OBL revenue and a 1% increase in hospital revenues. U.S. peripheral revenues also benefited from a 36% increase in ISD revenues.
Margins
The gross margin in the reported quarter was 73.9%, up 304 basis points (bps) year over year on a 21.2% rise in the cost of goods sold.
Selling, general and administrative expenses rose 1.9% to $46.6 million. Research and development expenses reduced 5.1% to $8.8 million.
Adjusted operating expenses rose 0.7% to $55.4 million. Adjusted operating loss in the reported quarter was $9.1 million compared with an adjusted operating loss of $4.6 million in the year-ago period.
Financial Position
The company exited fiscal 2022 with cash and cash equivalents of $66.4 million compared with $71.1 million at the end of fiscal 2021.
2022 Guidance
Cardiovascular Systems’ management forecasts a revenue growth trend in fiscal 2023 with a gradual improvement in the state of the U.S. healthcare system combined with strong sales execution, accelerating revenues from the sale of interventional support devices, successful product introductions and international expansion.
Full-year revenues are expected in the band of $255 million to $265 million. The Zacks Consensus Estimate for the same is currently pegged at $257.9 million.
The company expects net loss in the range of 9% to 11% of revenues. The Zacks Consensus Estimate for the metric is pegged at a loss of 68 cents per share.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -9.3% due to these changes.
VGM Scores
Currently, Cardiovascular Systems has an average Growth Score of C, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Cardiovascular Systems has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Cardiovascular Systems (CSII) Down 18.9% Since Last Earnings Report?
It has been about a month since the last earnings report for Cardiovascular Systems . Shares have lost about 18.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Cardiovascular Systems due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Cardiovascular Systems Q4 Earnings Miss Estimates
Cardiovascular Systems reported a loss of 25 cents per share for fourth-quarter fiscal 2022 compared with a loss of 14 cents in the prior-year period. The reported loss was wider than the Zacks Consensus Estimate of a loss of 22 cents.
For the full year, the company reported a loss of 94 cents per share, which compared unfavorably with a loss of 35 cents per share in the year-ago period.
Net Sales
Cardiovascular Systems’ revenues of $62.5 million dropped 11.9% year over year. The top line also missed the Zacks Consensus Estimate by 0.6%. According to the company, despite the headwinds caused by labor and contrast shortages, it reported sequential acceleration in sales.
Fiscal 2022 revenues were $236.2 million, down 8.8% from fiscal 2022.
Segment Details
In the quarter under review, worldwide coronary revenues decreased 13.4% year over year to $21.8 million.
On a sequential basis, in the United States, coronary revenues increased 16%, led by 11% growth in units sold. Coronary support products increased 37%. Outside the United States, coronary revenues increased 14% sequentially, as a result of continued strength in Japan, combined with the successful launch of Coronary OAS in Europe.
Worldwide peripheral revenues plunged 14.7% year over year in the quarter to $40.7 million.
On a sequential basis, fourth quarter worldwide peripheral revenues increased 9%. In the United States, peripheral franchise revenues increased 9%, led by a 27% increase in OBL revenue and a 1% increase in hospital revenues. U.S. peripheral revenues also benefited from a 36% increase in ISD revenues.
Margins
The gross margin in the reported quarter was 73.9%, up 304 basis points (bps) year over year on a 21.2% rise in the cost of goods sold.
Selling, general and administrative expenses rose 1.9% to $46.6 million. Research and development expenses reduced 5.1% to $8.8 million.
Adjusted operating expenses rose 0.7% to $55.4 million. Adjusted operating loss in the reported quarter was $9.1 million compared with an adjusted operating loss of $4.6 million in the year-ago period.
Financial Position
The company exited fiscal 2022 with cash and cash equivalents of $66.4 million compared with $71.1 million at the end of fiscal 2021.
2022 Guidance
Cardiovascular Systems’ management forecasts a revenue growth trend in fiscal 2023 with a gradual improvement in the state of the U.S. healthcare system combined with strong sales execution, accelerating revenues from the sale of interventional support devices, successful product introductions and international expansion.
Full-year revenues are expected in the band of $255 million to $265 million. The Zacks Consensus Estimate for the same is currently pegged at $257.9 million.
The company expects net loss in the range of 9% to 11% of revenues. The Zacks Consensus Estimate for the metric is pegged at a loss of 68 cents per share.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -9.3% due to these changes.
VGM Scores
Currently, Cardiovascular Systems has an average Growth Score of C, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Cardiovascular Systems has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.