The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Endologix met expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share dropped to a loss.
Margins contracted across the board.
Endologix tallied revenue of $23.4 million. The six analysts polled by S&P Capital IQ wanted to see revenue of $23.5 million on the same basis. GAAP reported sales were 22% higher than the prior-year quarter's $19.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at -$0.06. The six earnings estimates compiled by S&P Capital IQ anticipated -$0.05 per share on the same basis. GAAP EPS were -$0.07 for Q4 against $0.22 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 76.9%, 110 basis points worse than the prior-year quarter. Operating margin was -14.0%, 1,660 basis points worse than the prior-year quarter. Net margin was -15.7%, 7,660 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $23.4 million. On the bottom line, the average EPS estimate is -$0.06.
Next year's average estimate for revenue is $105.2 million. The average EPS estimate is -$0.15.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 50 members out of 60 rating the stock outperform, and 10 members rating it underperform. Among 14 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 11 give Endologix a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Endologix is outperform, with an average price target of $13.50.
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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.