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Cardiovascular Systems (CSII) Stock Hits New 52-Week High

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Shares of Cardiovascular Systems, Inc. reached a new 52-week high of $53.71 on Jan 17, closing the session marginally lower at $53.61. The stock has rallied 2.7% since its first-quarter fiscal 2020 earnings announcement on Oct 29.

The company witnessed mixed fiscal first-quarter results, backed by strong performance in the domestic and international markets. Notably, it is concentrating on product innovation through R&D investments.

Let us delve deeper.

 



 

Q3 Performance

Cardiovascular Systems ended first-quarter fiscal 2020 on a mixed note, with wider-than-expected loss and a revenue beat. It witnessed year-over-year revenue improvements in Coronary and Peripheral device segments within the domestic market. Treatment of the first patient in the Middle East with a peripheral orbital atherectomy system is another highlight of the quarter. The FDA approval of Viperwire Advance Coronary Guide Wire with Flex Tip instills optimism.

Over and above, the company’s reaffirmed guidance for fiscal 2020 indicates that it will be able to maintain its ongoing momentum in the second quarter as well.

Other Key Drivers

Portfolio Expansion: Investors are optimistic about the impressive customer adoption of Cardiovascular Systems’ 1-millimeter Sapphire balloon, the Teleport Microcatheter and radio support. The company is increasingly focusing on improving its R&D, thus leading to product launches like that of the Nitinol Coronary ViperWire Advance wire with Flex Tip in the United States.

The launch of Nitino is a crucial addition to Cardiovascular Systems’ complex coronary portfolio, consisting of Diamondback 360 Coronary Orbital Atherectomy System with GlideAssist, the Sapphire balloon, including the only 1.0mm coronary angioplasty balloon in the U.S. market, and the Teleport microcatheter.

Notably, the company introduced Peripheral Orbital Atherectomy System With GlideAssist in Europe in December 2019.

International Business: The concerted efforts of Cardiovascular Systems to increase its global footprint buoy optimism within the investors. The company is making progress in introducing orbital atherectomy system (OAS) globally. In this respect, Cardiovascular Systems is performing robustly on its partnership with OrbusNeich, which allows OrbusNeich to distribute Cardiovascular Systems’ coronary and peripheral orbital atherectomy systems in multiple countries outside the United States and Japan.

Zacks Rank & Key Picks

Currently, Cardiovascular Systems carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader medical space are Haemonetics Corporation (HAE - Free Report) , Hill-Rom Holdings, Inc. and Medtronic plc (MDT - Free Report) .

Haemonetics currently sports a Zacks Rank #1 (Strong Buy) and has a projected long-term earnings growth rate of 13.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Hill-Rom’s long-term earnings growth rate is estimated at 11.7%. The company currently carries a Zacks Rank of 2 (Buy).

Medtronic’s long-term earnings growth rate is expected at 7.4%. It currently has a Zacks Rank #2.

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