The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Cynosure beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share grew.
Margins grew across the board.
Cynosure logged revenue of $37.1 million. The three analysts polled by S&P Capital IQ predicted revenue of $34.6 million on the same basis. GAAP reported sales were 31% higher than the prior-year quarter's $28.3 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 $0.25. The four earnings estimates compiled by S&P Capital IQ forecast $0.12 per share. GAAP EPS were $0.25 for Q3 versus -$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 58.2%, 170 basis points better than the prior-year quarter. Operating margin was 9.0%, 900 basis points better than the prior-year quarter. Net margin was 9.2%, 1,200 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $40.4 million. On the bottom line, the average EPS estimate is $0.22.
Next year's average estimate for revenue is $148.8 million. The average EPS estimate is $0.60.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 371 members out of 386 rating the stock outperform, and 15 members rating it underperform. Among 90 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 83 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 $32.00.
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