The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Nxstage Medical met expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP loss per share dropped.
Margins increased across the board.
Nxstage Medical reported revenue of $61.2 million. The 14 analysts polled by S&P Capital IQ anticipated a top line of $60.9 million on the same basis. GAAP reported sales were 9.4% higher than the prior-year quarter's $55.9 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 -$0.04. The 10 earnings estimates compiled by S&P Capital IQ predicted -$0.06 per share. GAAP EPS were -$0.04 for Q3 against -$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 38.8%, 380 basis points better than the prior-year quarter. Operating margin was -3.8%, 280 basis points better than the prior-year quarter. Net margin was -4.2%, 520 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $64.8 million. On the bottom line, the average EPS estimate is -$0.04.
Next year's average estimate for revenue is $241.6 million. The average EPS estimate is -$0.28.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 140 members out of 173 rating the stock outperform, and 33 members rating it underperform. Among 50 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 41 give Nxstage Medical a green thumbs-up, and nine give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Nxstage Medical is outperform, with an average price target of $19.54.
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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. The Motley Fool owns shares of NxStage Medical. Motley Fool newsletter services recommend NxStage Medical. 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.