Volcano
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Volcano missed slightly on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share dropped.
Gross margins dropped, operating margins grew, net margins dropped.
Revenue details
Volcano reported revenue of $93.7 million. The 15 analysts polled by S&P Capital IQ expected to see revenue of $95.2 million on the same basis. GAAP reported sales were 9.2% higher than the prior-year quarter's $85.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $0.04. The 15 earnings estimates compiled by S&P Capital IQ forecast $0.04 per share. GAAP EPS of $0.04 for Q3 were 20% lower than the prior-year quarter's $0.05 per share.
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 64.5%, 110 basis points worse than the prior-year quarter. Operating margin was 6.4%, 10 basis points better than the prior-year quarter. Net margin was 2.1%, 100 basis points worse than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $105.1 million. On the bottom line, the average EPS estimate is $0.09.
Next year's average estimate for revenue is $385.9 million. The average EPS estimate is $0.20.
Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 167 members out of 192 rating the stock outperform, and 25 members rating it underperform. Among 55 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 46 give Volcano a green thumbs-up, and nine 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 $31.73.
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