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Cardiovascular Systems (CSII) Reports Q3 Loss, Lower Margin
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Cardiovascular Systems, Inc. reported loss per share of 8 cents for third-quarter fiscal 2020 against earnings per share of 2 cents in the prior-year period. The reported loss however was a penny narrower than the Zacks Consensus Estimate.
Net Sales
Cardiovascular Systems’ revenues of $61.2 million declined 3.4% year over year. Meanwhile, the top line missed the Zacks Consensus Estimate by 4.4%.
Segment Details
In the quarter under review, global Coronary device revenues increased 2% year over year to $18.5 million.Domestic coronary revenues declined 2% from the year-ago period, primarily due to lower atherectomy unit volumes, partially offset by an increase in revenue from coronary support devices.
Global peripheral revenues decreased 6% to $42.6 million. Domestically, peripheral unit volumes decreased 6%.
Cardiovascular Systems, Inc. Price, Consensus and EPS Surprise
Total U.S. revenues declined 5% to $58.1 million, while International revenues totaled around $3.1 million, a 27% rise.
Margin
Gross margin in the reported quarter was 80%, down 77 basis points (bps) year over year due to 4.3% fall in gross profit.
Meanwhile, selling, general and administrative (SG&A) expenses edged up 0.1% to $41.3 million. Research and development (R&D) expenses escalated 8.8% to $9.9 million. As a result, operating expenses increased 1.7% to $51.3 million. Operating loss in the reported quarter came in at $2.4 million against operating profit of $0.6 million a year ago.
Financial Position
The company exited third-quarter fiscal 2020 with cash and cash equivalents of $69.6 million, compared with $65.5 million at the end of second-quarter fiscal 2020.
2020 Guidance Withdrawn
On Apr 1, Cardiovascular Systems, while facing a disruption in procedural volume as a result of the COVID-19 outbreak, announced the withdrawal of its fiscal 2020 financial guidance.The company noted that, through April,the magnitude of this disruption intensified as hospitals across the United States prioritized care for coronavirus patients.
Our Take
Cardiovascular Systems reported dismal sales performance for its fiscal third quarter. According to the company, beginning the second week of March and through the end of the month, hospitals in the United States increasingly focused on the treatment of COVID-19 patients and largely implemented stay-at-home orders. In this span, the company witnessed a 25% decline in procedure volumes on a year-over=year basis for patients treated with orbital atherectomy devices. This significantly impacted the company’s domestic sales.
Following the company’s announcement of guidance withdrawal, the magnitude of this procedural disruption intensified.
Cardiovascular Systems currently has a Zacks Rank #3 (Hold).
Earnings of Other MedTech Majors at a Glance
Aphria reported third-quarter fiscal 2020 adjusted EPS of 2 cents against the Zacks Consensus Estimate of a loss of 4 cents. Net revenues of $64.4 million outpaced the consensus estimate by 14.6%. The company carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Biogen (BIIB - Free Report) currently carries a Zacks Rank #2. It reported first-quarter 2020 adjusted EPS of $9.14, surpassing the Zacks Consensus Estimate by 18.1%. Revenues of $3.53 billion outpaced the consensus mark by 3.2%.
Eli Lilly (LLY - Free Report) delivered first-quarter 2020 EPS of $1.75, outpacing the Zacks Consensus Estimate by 12.9%. Revenues of $145.3 million surpassed the consensus estimate by 6.3%. The company currently sports a Zacks Rank #1.
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Cardiovascular Systems (CSII) Reports Q3 Loss, Lower Margin
Cardiovascular Systems, Inc. reported loss per share of 8 cents for third-quarter fiscal 2020 against earnings per share of 2 cents in the prior-year period. The reported loss however was a penny narrower than the Zacks Consensus Estimate.
Net Sales
Cardiovascular Systems’ revenues of $61.2 million declined 3.4% year over year. Meanwhile, the top line missed the Zacks Consensus Estimate by 4.4%.
Segment Details
In the quarter under review, global Coronary device revenues increased 2% year over year to $18.5 million.Domestic coronary revenues declined 2% from the year-ago period, primarily due to lower atherectomy unit volumes, partially offset by an increase in revenue from coronary support devices.
Global peripheral revenues decreased 6% to $42.6 million. Domestically, peripheral unit volumes decreased 6%.
Cardiovascular Systems, Inc. Price, Consensus and EPS Surprise
Cardiovascular Systems, Inc. price-consensus-eps-surprise-chart | Cardiovascular Systems, Inc. Quote
Total U.S. revenues declined 5% to $58.1 million, while International revenues totaled around $3.1 million, a 27% rise.
Margin
Gross margin in the reported quarter was 80%, down 77 basis points (bps) year over year due to 4.3% fall in gross profit.
Meanwhile, selling, general and administrative (SG&A) expenses edged up 0.1% to $41.3 million. Research and development (R&D) expenses escalated 8.8% to $9.9 million. As a result, operating expenses increased 1.7% to $51.3 million. Operating loss in the reported quarter came in at $2.4 million against operating profit of $0.6 million a year ago.
Financial Position
The company exited third-quarter fiscal 2020 with cash and cash equivalents of $69.6 million, compared with $65.5 million at the end of second-quarter fiscal 2020.
2020 Guidance Withdrawn
On Apr 1, Cardiovascular Systems, while facing a disruption in procedural volume as a result of the COVID-19 outbreak, announced the withdrawal of its fiscal 2020 financial guidance.The company noted that, through April,the magnitude of this disruption intensified as hospitals across the United States prioritized care for coronavirus patients.
Our Take
Cardiovascular Systems reported dismal sales performance for its fiscal third quarter. According to the company, beginning the second week of March and through the end of the month, hospitals in the United States increasingly focused on the treatment of COVID-19 patients and largely implemented stay-at-home orders. In this span, the company witnessed a 25% decline in procedure volumes on a year-over=year basis for patients treated with orbital atherectomy devices. This significantly impacted the company’s domestic sales.
Following the company’s announcement of guidance withdrawal, the magnitude of this procedural disruption intensified.
Cardiovascular Systems currently has a Zacks Rank #3 (Hold).
Earnings of Other MedTech Majors at a Glance
Aphria reported third-quarter fiscal 2020 adjusted EPS of 2 cents against the Zacks Consensus Estimate of a loss of 4 cents. Net revenues of $64.4 million outpaced the consensus estimate by 14.6%. The company carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Biogen (BIIB - Free Report) currently carries a Zacks Rank #2. It reported first-quarter 2020 adjusted EPS of $9.14, surpassing the Zacks Consensus Estimate by 18.1%. Revenues of $3.53 billion outpaced the consensus mark by 3.2%.
Eli Lilly (LLY - Free Report) delivered first-quarter 2020 EPS of $1.75, outpacing the Zacks Consensus Estimate by 12.9%. Revenues of $145.3 million surpassed the consensus estimate by 6.3%. The company currently sports a Zacks Rank #1.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
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