The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Conceptus met expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank, and GAAP earnings per share dropped to a loss.
Gross margins grew, operating margins shrank, and net margins contracted.
Conceptus reported revenue of $33.5 million. The 10 analysts polled by S&P Capital IQ expected a top line of $33.2 million on the same basis. GAAP reported sales were 8.4% lower than the prior-year quarter's $36.6 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 five earnings estimates compiled by S&P Capital IQ predicted $0.02 per share. GAAP EPS were -$0.08 for Q4 versus $2.66 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 83.5%, 160 basis points better than the prior-year quarter. Operating margin was -8.4%, 2,520 basis points worse than the prior-year quarter. Net margin was -7.6%, 23,630 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $28 million. On the bottom line, the average EPS estimate is -$0.13.
Next year's average estimate for revenue is $135.6 million. The average EPS estimate is $0.04.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 79 members rating the stock outperform and 13 members rating it underperform. Among 27 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 22 give Conceptus a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Conceptus is outperform, with an average price target of $14.22.
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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.