Heartware International
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Heartware International whiffed on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP loss per share grew.
Margins shrank across the board.
Revenue details
Heartware International recorded revenue of $22.8 million. The 16 analysts polled by S&P Capital IQ expected a top line of $26.1 million on the same basis. GAAP reported sales were 7.1% higher than the prior-year quarter's $21.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at -$1.75. The 14 earnings estimates compiled by S&P Capital IQ averaged -$1.51 per share. GAAP EPS were -$0.05 for Q3 versus -$0.03 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 52.2%, 1,090 basis points worse than the prior-year quarter. Operating margin was -101.5%, 5,430 basis points worse than the prior-year quarter. Net margin was -109.3%, 4,390 basis points worse than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $28.8 million. On the bottom line, the average EPS estimate is -$1.54.
Next year's average estimate for revenue is $107.7 million. The average EPS estimate is -$6.33.
Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 29 members out of 47 rating the stock outperform, and 18 members rating it underperform. Among 15 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), nine give Heartware International a green thumbs-up, and six 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 $96.86.
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