The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Cynosure beat expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly, and GAAP earnings per share expanded.
Margins increased across the board.
Cynosure recorded revenue of $34.1 million. The four analysts polled by S&P Capital IQ hoped for sales of $33.3 million on the same basis. GAAP reported sales were 53% higher than the prior-year quarter's $22.3 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 $0.08. The four earnings estimates compiled by S&P Capital IQ predicted $0.05 per share. GAAP EPS were $0.08 for Q4 versus -$0.07 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 56.3%, 40 basis points better than the prior-year quarter. Operating margin was 4.2%, 700 basis points better than the prior-year quarter. Net margin was 3.2%, 680 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $30.5 million. On the bottom line, the average EPS estimate is -$0.04.
Next year's average estimate for revenue is $135.5 million. The average EPS estimate is $0.17.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 369 members rating the stock outperform and 10 members rating it underperform. Among 107 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 105 give Cynosure 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 Cynosure is outperform, with an average price target of $17.50.
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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.