The 10-second takeaway
For the quarter ended Dec. 29 (Q4), Thoratec beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share shrank to a loss.
Gross margins grew, operating margins dropped, net margins dropped.
Thoratec reported revenue of $128.5 million. The 17 analysts polled by S&P Capital IQ expected to see a top line of $118.8 million on the same basis. GAAP reported sales were 17% higher than the prior-year quarter's $109.4 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 $0.38. The 16 earnings estimates compiled by S&P Capital IQ forecast $0.38 per share. GAAP EPS were -$0.25 for Q4 against $0.25 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 69.7%, 440 basis points better than the prior-year quarter. Operating margin was 19.7%, 750 basis points worse than the prior-year quarter. Net margin was -11.2%, 2,520 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $126.8 million. On the bottom line, the average EPS estimate is $0.47.
Next year's average estimate for revenue is $506.2 million. The average EPS estimate is $1.84.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 153 members out of 174 rating the stock outperform, and 21 members rating it underperform. Among 49 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 42 give Thoratec 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 Thoratec is outperform, with an average price target of $40.13.
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