The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Heartware International beat expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP loss per share contracted. GAAP loss per share stayed the same.
Gross margins dropped, operating margins grew, net margins grew.
Heartware International tallied revenue of $33.2 million. The 14 analysts polled by S&P Capital IQ expected net sales of $29.5 million on the same basis. GAAP reported sales were 42% higher than the prior-year quarter's $23.1 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 -$1.46. The 14 earnings estimates compiled by S&P Capital IQ anticipated -$1.65 per share. Non-GAAP EPS were -$1.46 for Q4 against -$1.53 per share for the prior-year quarter. GAAP EPS of -$0.04 were the same as the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 49.2%, 940 basis points worse than the prior-year quarter. Operating margin was -59.3%, much better than the prior-year quarter. Net margin was -64.6%, much better than the prior-year quarter.
Next quarter's average estimate for revenue is $39.6 million. On the bottom line, the average EPS estimate is -$1.11.
Next year's average estimate for revenue is $185.5 million. The average EPS estimate is -$3.53.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 29 members out of 47 rating the stock outperform, and 18 members rating it underperform. Among 15 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), nine give Heartware International 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 Heartware International is outperform, with an average price target of $96.71.
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