The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Nxstage Medical beat expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue increased. GAAP loss per share dropped.
Margins grew across the board.
Nxstage Medical recorded revenue of $65.0 million. The 13 analysts polled by S&P Capital IQ hoped for revenue of $63.5 million on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $57.0 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 11 earnings estimates compiled by S&P Capital IQ averaged -$0.05 per share. GAAP EPS were -$0.04 for Q4 versus -$0.08 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 39.0%, 190 basis points better than the prior-year quarter. Operating margin was -2.9%, 270 basis points better than the prior-year quarter. Net margin was -3.6%, 440 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $63.8 million. On the bottom line, the average EPS estimate is -$0.05.
Next year's average estimate for revenue is $269.0 million. The average EPS estimate is -$0.11.
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 48 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 40 give Nxstage Medical a green thumbs-up, and eight 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 $17.00.
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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 recommends NxStage Medical. The Motley Fool owns shares of 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.