The 10-second takeaway
For the quarter ended June 30 (Q2), Cynosure beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share improved.
Margins expanded across the board.
Cynosure chalked up revenue of $39.6 million. The four analysts polled by S&P Capital IQ foresaw sales of $36.1 million on the same basis. GAAP reported sales were 50% higher than the prior-year quarter's $26.3 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 $0.20. The three earnings estimates compiled by S&P Capital IQ predicted $0.11 per share. GAAP EPS were $0.20 for Q2 compared to -$0.10 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 58.2%, 100 basis points better than the prior-year quarter. Operating margin was 12.4%, 1,690 basis points better than the prior-year quarter. Net margin was 6.8%, 1,170 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $34.6 million. On the bottom line, the average EPS estimate is $0.11.
Next year's average estimate for revenue is $147.8 million. The average EPS estimate is $0.59.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 368 members out of 384 rating the stock outperform, and 16 members rating it underperform. Among 88 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 81 give Cynosure 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 Cynosure is buy, with an average price target of $26.40.
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