It has been about a month since the last earnings report for Cardiovascular Systems, Inc. . Shares have added about 11.1% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock’s next earnings release, or is it 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.
Recent Earnings
Cardiovascular Systems, Inc. reported earnings per share of $0.03 in second-quarter fiscal 2017, reflecting a massive improvement from the year-ago quarter’s loss of $0.47. Also, earnings compared favorably with the Zacks Consensus Estimate of a loss of $0.06.
The year-over-year improvement in earnings was primarily backed by revenue growth, better gross margin and lower operating expenses on account of the company’s cost realignment actions.
Quarter in Details
Cardiovascular Systems posted revenues of $50.0 million in the fiscal second quarter, marking a year-over-year increase of 20.9%. However, revenues were in line with the Zacks Consensus Estimate.
Per management, the strong top-line performance exhibited the company’s efforts to stabilize and support its field sales representatives.
During the reported quarter, Cardiovascular Systems sold over 15,000 devices, generating 92% of revenues. The company added 45 new peripheral accounts and 54 coronary accounts.
Coronary device revenues improved 51% year over year to $13 million while peripheral device revenues rose 13% to $37 million. Other product revenues increased 21.4% year over year to $4.0 million. Customer reorder revenues were strong at 98% of total revenue.
Margin
Gross margin in the reported quarter was 81.6%, up 119 basis points year over year, primarily on account of unit cost reductions and slightly higher devices ASPs.
Meanwhile, selling and administrative (SG&A) expenses contracted 17.6% to $33.9 million, while research and development (R&D) expenses fell 19.4% to $5.8 million. The resultant adjusted operating expenses declined 17.8% to $39.7 million, primarily exhibiting management’s cost realignment initiatives and timing of studies and projects. Consequently, operating profit improved to $1.0 million from a loss of $15.1 million a year ago.
Financial position
The company exited the second quarter of fiscal 2017 with cash and cash equivalents of $79.2 million, reflecting a 36.1% improvement from $58.2 million at the end of first-quarter 2017.
Outlook
Cardiovascular Systems provided its third quarter of fiscal 2017 guidance. The company expects revenues in the range of $50.5–$51.5 million. The current Zacks Consensus Estimate for third quarter of fiscal 2017 revenues stand at $54.8 million, above the company’s guidance.
Moreover, the company expects gross profit to account for 81% of revenues and operating expenses of almost $43 million.
The company expects to incur net loss of $1.2–$1.8 million or loss per share of $0.04–$0.06. The current Zacks Consensus Estimate is pegged at a loss of $0.03, narrower than the guided range issued by the company.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last one month period as none of them issued any earnings estimate revisions.
VGM Scores
At this time, Cardiovascular Systems' stock has a great Growth Score of 'A', however its Momentum is lagging a bit with 'B'. However, the stock was allocated a grade of 'F' on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stocks has an aggregte VGM Score of 'B'. If you aren't focused on one strategy, this score is the one you should be interested in.
Zacks' style scores indicate that the company's stock is suitable for growth and momentum investors.
Outlook
The stock has a Zacks Rank #2 (Buy). We are expecting an above average return from the stock in the next few months.
Image: Bigstock
Why Is Cardiovascular Systems (CSII) Up 11.1% Since the Last Earnings Report?
It has been about a month since the last earnings report for Cardiovascular Systems, Inc. . Shares have added about 11.1% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock’s next earnings release, or is it 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.
Recent Earnings
Cardiovascular Systems, Inc. reported earnings per share of $0.03 in second-quarter fiscal 2017, reflecting a massive improvement from the year-ago quarter’s loss of $0.47. Also, earnings compared favorably with the Zacks Consensus Estimate of a loss of $0.06.
The year-over-year improvement in earnings was primarily backed by revenue growth, better gross margin and lower operating expenses on account of the company’s cost realignment actions.
Quarter in Details
Cardiovascular Systems posted revenues of $50.0 million in the fiscal second quarter, marking a year-over-year increase of 20.9%. However, revenues were in line with the Zacks Consensus Estimate.
Per management, the strong top-line performance exhibited the company’s efforts to stabilize and support its field sales representatives.
During the reported quarter, Cardiovascular Systems sold over 15,000 devices, generating 92% of revenues. The company added 45 new peripheral accounts and 54 coronary accounts.
Coronary device revenues improved 51% year over year to $13 million while peripheral device revenues rose 13% to $37 million. Other product revenues increased 21.4% year over year to $4.0 million. Customer reorder revenues were strong at 98% of total revenue.
Margin
Gross margin in the reported quarter was 81.6%, up 119 basis points year over year, primarily on account of unit cost reductions and slightly higher devices ASPs.
Meanwhile, selling and administrative (SG&A) expenses contracted 17.6% to $33.9 million, while research and development (R&D) expenses fell 19.4% to $5.8 million. The resultant adjusted operating expenses declined 17.8% to $39.7 million, primarily exhibiting management’s cost realignment initiatives and timing of studies and projects. Consequently, operating profit improved to $1.0 million from a loss of $15.1 million a year ago.
Financial position
The company exited the second quarter of fiscal 2017 with cash and cash equivalents of $79.2 million, reflecting a 36.1% improvement from $58.2 million at the end of first-quarter 2017.
Outlook
Cardiovascular Systems provided its third quarter of fiscal 2017 guidance. The company expects revenues in the range of $50.5–$51.5 million. The current Zacks Consensus Estimate for third quarter of fiscal 2017 revenues stand at $54.8 million, above the company’s guidance.
Moreover, the company expects gross profit to account for 81% of revenues and operating expenses of almost $43 million.
The company expects to incur net loss of $1.2–$1.8 million or loss per share of $0.04–$0.06. The current Zacks Consensus Estimate is pegged at a loss of $0.03, narrower than the guided range issued by the company.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last one month period as none of them issued any earnings estimate revisions.
Cardiovascular Systems, Inc. Price and Consensus
Cardiovascular Systems, Inc. Price and Consensus | Cardiovascular Systems, Inc. Quote
VGM Scores
At this time, Cardiovascular Systems' stock has a great Growth Score of 'A', however its Momentum is lagging a bit with 'B'. However, the stock was allocated a grade of 'F' on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stocks has an aggregte VGM Score of 'B'. If you aren't focused on one strategy, this score is the one you should be interested in.
Zacks' style scores indicate that the company's stock is suitable for growth and momentum investors.
Outlook
The stock has a Zacks Rank #2 (Buy). We are expecting an above average return from the stock in the next few months.