The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Natus Medical missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share grew significantly. GAAP earnings per share increased.
Margins increased across the board.
Natus Medical chalked up revenue of $90.5 million. The three analysts polled by S&P Capital IQ hoped for sales of $93.6 million on the same basis. GAAP reported sales were 41% higher than the prior-year quarter's $64.1 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 $0.29. The three earnings estimates compiled by S&P Capital IQ anticipated $0.26 per share. Non-GAAP EPS of $0.29 for Q4 were 107% higher than the prior-year quarter's $0.14 per share. GAAP EPS were $0.16 for Q4 versus -$0.60 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 56.5%, 110 basis points better than the prior-year quarter. Operating margin was 9.3%, 10 basis points better than the prior-year quarter. Net margin was 5.3%, much better than the prior-year quarter.
Next quarter's average estimate for revenue is $83.7 million. On the bottom line, the average EPS estimate is $0.09.
Next year's average estimate for revenue is $362.1 million. The average EPS estimate is $0.83.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,236 members out of 1,266 rating the stock outperform, and 30 members rating it underperform. Among 363 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 353 give Natus Medical a green thumbs-up, and 10 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Natus Medical is hold, with an average price target of $16.00.
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