Volcano Corp.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Volcano met expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share grew.
Margins expanded across the board.
Revenue details
Volcano chalked up revenue of $92.7 million. The 13 analysts polled by S&P Capital IQ expected sales of $92.8 million on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $81.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
Non-GAAP EPS came in at $0.14. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.05 per share on the same basis. GAAP EPS were $0.54 for Q4 against -$0.03 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 67.3%, 320 basis points better than the prior-year quarter. Operating margin was 9.4%, 560 basis points better than the prior-year quarter. Net margin was 31.7%, 3,380 basis points better than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $92.2 million. On the bottom line, the average EPS estimate is $0.00.
Next year's average estimate for revenue is $398.0 million. The average EPS estimate is $0.23.
Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 172 members out of 192 rating the stock outperform, and 20 members rating it underperform. Among 55 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 49 give Volcano a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Volcano is outperform, with an average price target of $29.95.
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