The 10-second takeaway
For the quarter ended June 30 (Q1), Abaxis beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share expanded significantly.
Margins improved across the board.
Abaxis booked revenue of $42.0 million. The seven analysts polled by S&P Capital IQ expected net sales of $40.6 million on the same basis. GAAP reported sales were 17% higher than the prior-year quarter's $36.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.13. The eight earnings estimates compiled by S&P Capital IQ predicted $0.17 per share. GAAP EPS of $0.13 for Q1 were 30% higher than the prior-year quarter's $0.10 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 54.4%, 100 basis points better than the prior-year quarter. Operating margin was 11.4%, 250 basis points better than the prior-year quarter. Net margin was 6.8%, 70 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $44.8 million. On the bottom line, the average EPS estimate is $0.21.
Next year's average estimate for revenue is $178.5 million. The average EPS estimate is $0.87.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 162 members out of 179 rating the stock outperform, and 17 members rating it underperform. Among 43 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 40 give Abaxis a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Abaxis is outperform, with an average price target of $35.81.
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