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Cardiovascular Systems (CSII) Up 0.9% Since Last Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for Cardiovascular Systems . Shares have added about 0.9% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Cardiovascular Systems due for a pullback? 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 Q3 Earnings Top Estimates
Cardiovascular Systems 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.
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. TheZacks 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.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
The consensus estimate has shifted 15.36% due to these changes.
VGM Scores
Currently, Cardiovascular Systems has a poor Growth Score of F, 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 D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Cardiovascular Systems has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Cardiovascular Systems belongs to the Zacks Medical - Products industry. Another stock from the same industry, Abbott (ABT - Free Report) , has gained 4% over the past month. More than a month has passed since the company reported results for the quarter ended March 2022.
Abbott reported revenues of $11.9 billion in the last reported quarter, representing a year-over-year change of +13.8%. EPS of $1.73 for the same period compares with $1.32 a year ago.
For the current quarter, Abbott is expected to post earnings of $1.11 per share, indicating a change of -5.1% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.2% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Abbott. Also, the stock has a VGM Score of B.
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Cardiovascular Systems (CSII) Up 0.9% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Cardiovascular Systems . Shares have added about 0.9% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Cardiovascular Systems due for a pullback? 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 Q3 Earnings Top Estimates
Cardiovascular Systems 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.
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. TheZacks 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.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
The consensus estimate has shifted 15.36% due to these changes.
VGM Scores
Currently, Cardiovascular Systems has a poor Growth Score of F, 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 D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Cardiovascular Systems has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Cardiovascular Systems belongs to the Zacks Medical - Products industry. Another stock from the same industry, Abbott (ABT - Free Report) , has gained 4% over the past month. More than a month has passed since the company reported results for the quarter ended March 2022.
Abbott reported revenues of $11.9 billion in the last reported quarter, representing a year-over-year change of +13.8%. EPS of $1.73 for the same period compares with $1.32 a year ago.
For the current quarter, Abbott is expected to post earnings of $1.11 per share, indicating a change of -5.1% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.2% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Abbott. Also, the stock has a VGM Score of B.