The 10-second takeaway
For the quarter ended Dec. 31 (Q3), Abaxis missed on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and earnings per share shrank significantly.
Margins shrank across the board.
Abaxis tallied revenue of $37.9 million. The nine analysts polled by S&P Capital IQ foresaw revenue of $40.7 million. Sales were 5.4% higher than the prior-year quarter's $35.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $0.13. The nine earnings estimates compiled by S&P Capital IQ predicted $0.16 per share. GAAP EPS of $0.13 for Q3 were 24% lower than the prior-year quarter's $0.17 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 54.1%, 110 basis points worse than the prior-year quarter. Operating margin was 12.3%, 390 basis points worse than the prior-year quarter. Net margin was 7.5%, 320 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $42.7 million. On the bottom line, the average EPS estimate is $0.19.
Next year's average estimate for revenue is $159.1 million. The average EPS estimate is $0.59.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 157 members out of 172 rating the stock outperform, and 15 members rating it underperform. Among 48 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 46 give Abaxis a green thumbs-up, and two 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 $32.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy