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Spectranetics Beats on Both Top and Bottom Lines

By Seth Jayson - Updated Apr 10, 2017 at 1:43PM

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Just the facts, Fool.

Spectranetics (Nasdaq: SPNC) reported earnings on April 23. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Spectranetics beat expectations on revenues and exceeded expectations on earnings per share.

Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share. GAAP earnings per share.

Margins shrank across the board.

Revenue details
Spectranetics reported revenue of $37.7 million. The five analysts polled by S&P Capital IQ predicted revenue of $36.6 million on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $33.3 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 -$0.01. The five earnings estimates compiled by S&P Capital IQ predicted -$0.03 per share. Non-GAAP EPS were -$0.01 for Q1 compared to $0.00 per share for the prior-year quarter. GAAP EPS were -$0.03 for Q1 versus $0.00 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 71.2%, 180 basis points worse than the prior-year quarter. Operating margin was -4.0%, 380 basis points worse than the prior-year quarter. Net margin was -2.5%, 250 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $38.8 million. On the bottom line, the average EPS estimate is -$0.01.

Next year's average estimate for revenue is $154.8 million. The average EPS estimate is $0.02.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 156 members out of 174 rating the stock outperform, and 18 members rating it underperform. Among 39 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 32 give Spectranetics 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 Spectranetics is buy, with an average price target of $19.90.

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