The 10-second takeaway
For the quarter ended Dec. 31 (Q3), Abaxis beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share grew significantly.
Gross margins dropped, operating margins grew, net margins grew.
Abaxis recorded revenue of $49.8 million. The eight analysts polled by S&P Capital IQ hoped for sales of $46.0 million on the same basis. GAAP reported sales were 32% higher than the prior-year quarter's $37.9 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 $0.22. The eight earnings estimates compiled by S&P Capital IQ averaged $0.20 per share. GAAP EPS of $0.22 for Q3 were 69% higher than the prior-year quarter's $0.13 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 52.4%, 170 basis points worse than the prior-year quarter. Operating margin was 15.4%, 310 basis points better than the prior-year quarter. Net margin was 10.0%, 250 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $50.6 million. On the bottom line, the average EPS estimate is $0.26.
Next year's average estimate for revenue is $182.6 million. The average EPS estimate is $0.77.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 162 members out of 178 rating the stock outperform, and 16 members rating it underperform. Among 45 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 43 give Abaxis a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Abaxis is outperform, with an average price target of $41.28.
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