The 10-second takeaway
For the quarter ended Dec. 31 (Q4), NxStage Medical beat slightly on revenue and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP loss per share dropped.
Margins expanded across the board.
NxStage Medical reported revenue of $57.0 million. The 12 analysts polled by S&P Capital IQ predicted revenue of $56.3 million on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $49.8 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 10 earnings estimates compiled by S&P Capital IQ predicted -$0.09 per share. GAAP EPS were -$0.08 for Q4 compared to -$0.13 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 37.1%, 180 basis points better than the prior-year quarter. Operating margin was -5.6%, 480 basis points better than the prior-year quarter. Net margin was -8.0%, 460 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $56.4 million. On the bottom line, the average EPS estimate is -$0.10.
Next year's average estimate for revenue is $243.5 million. The average EPS estimate is -$0.31.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 141 members out of 175 rating the stock outperform, and 34 members rating it underperform. Among 60 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 49 give NxStage Medical a green thumbs-up, and 11 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on NxStage Medical is outperform, with an average price target of $26.13.
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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. Motley Fool newsletter services have recommended buying shares of NxStage Medical. 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.