The 10-second takeaway
For the quarter ended March 31 (Q1), Heartware International crushed expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP loss per share improved.
Gross margins expanded, operating margins dropped, and net margins dropped.
Heartware International booked revenue of $27 million. The 15 analysts polled by S&P Capital IQ expected to see revenue of $21 million on the same basis. GAAP reported sales were 47% higher than the prior-year quarter's $18 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 -$1.33. The 14 earnings estimates compiled by S&P Capital IQ predicted -$1.41 per share. GAAP EPS were -$0.04 for Q1 versus -$0.02 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 58.9%, 120 basis points better than the prior-year quarter. Operating margin was -65.3%, 2,310 basis points worse than the prior-year quarter. Net margin was -71.5%, 1,900 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $21.7 million. On the bottom line, the average EPS estimate is -$1.34.
Next year's average estimate for revenue is $108 million. The average EPS estimate is -$4.58.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 26 members rating the stock outperform and 12 members rating it underperform. Among 14 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 10 give Heartware International a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Heartware International is outperform, with an average price target of $85.00.
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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.