The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Cerus crushed expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP loss per share increased.
Gross margins contracted, operating margins grew, net margins shrank.
Cerus booked revenue of $10.4 million. The three analysts polled by S&P Capital IQ expected a top line of $8.2 million on the same basis. GAAP reported sales were 61% higher than the prior-year quarter's $6.5 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 -$0.16. The four earnings estimates compiled by S&P Capital IQ predicted -$0.09 per share. GAAP EPS were -$0.16 for Q4 compared to -$0.06 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 38.0%, 580 basis points worse than the prior-year quarter. Operating margin was -34.4%, 3,630 basis points better than the prior-year quarter. Net margin was -76.7%, 3,880 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $8.7 million. On the bottom line, the average EPS estimate is -$0.09.
Next year's average estimate for revenue is $37.1 million. The average EPS estimate is -$0.33.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 134 members out of 149 rating the stock outperform, and 15 members rating it underperform. Among 35 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 28 give Cerus a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cerus is buy, with an average price target of $4.50.
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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.