The 10-second takeaway
For the quarter ended March 31 (Q1), Volcano missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share expanded. GAAP earnings per share.
Margins contracted across the board.
Volcano chalked up revenue of $93.2 million. The 16 analysts polled by S&P Capital IQ wanted to see a top line of $96.1 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.02. The 11 earnings estimates compiled by S&P Capital IQ anticipated -$0.01 per share. Non-GAAP EPS of $0.02 for Q1 were much higher than the prior-year quarter's $0.00 per share. GAAP EPS were -$0.06 for Q1 compared to $0.00 per share for 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 64.5%, 280 basis points worse than the prior-year quarter. Operating margin was -0.2%, 230 basis points worse than the prior-year quarter. Net margin was -3.4%, 370 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $98.2 million. On the bottom line, the average EPS estimate is $0.00.
Next year's average estimate for revenue is $396.3 million. The average EPS estimate is $0.06.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 165 members out of 190 rating the stock outperform, and 25 members rating it underperform. Among 48 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 40 give Volcano a green thumbs-up, and eight 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 $27.53.
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