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What: Shares of Syneron Medical (NASDAQ:ELOS), a global developer and marketer of aesthetic medical products, jumped as much as 12% after the company reported market-topping third-quarter earnings results.
So what: For the quarter, Syneron delivered a revenue increase of 4% to $62.7 million, helped most by its emerging business units segment that, though much smaller than its professional aesthetic device segment, delivered 17% year-over-year growth. Although Syneron's gross margin actually dipped 220 basis points to 53.1% from the year-ago period it still managed to expand its EPS to $0.04 from $0.03. By comparison, Wall Street was anticipating just a breakeven quarter in terms of EPS on $61.7 million in revenue.
Now what: With the exception of gyms and nutrition plan providers, let this earnings report serve as a reminder that you should never underestimate the drive of consumers to want to improve themselves aesthetically. Syneron's quarterly results also highlighted a pipeline update that looks filled with potentially new revenue growth drivers. Syneron certainly isn't cheap here at 22 times forward earnings, and it does have a fairly erratic history when it comes to earnings reports in terms of beats and misses, but I'd say it's definitely worth an add to your watchlist moving forward.
Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.
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