The 10-second takeaway
For the quarter ended March 29 (Q1), STAAR Surgical beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly. Non-GAAP earnings per share increased significantly. GAAP earnings per share stayed the same.
Gross margins were steady, operating margins grew, net margins increased.
STAAR Surgical tallied revenue of $18.0 million. The five analysts polled by S&P Capital IQ hoped for sales of $17.3 million on the same basis. GAAP reported sales were 16% higher than the prior-year quarter's $15.5 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 $0.08. The two earnings estimates compiled by S&P Capital IQ predicted $0.04 per share. Non-GAAP EPS of $0.08 for Q1 were 100% higher than the prior-year quarter's $0.04 per share. GAAP EPS of $0.01 were the same as 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 70.3%, much about the same as the prior-year quarter. Operating margin was 6.0%, 420 basis points better than the prior-year quarter. Net margin was 2.6%, 110 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $17.5 million. On the bottom line, the average EPS estimate is $0.04.
Next year's average estimate for revenue is $70.6 million. The average EPS estimate is $0.16.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 78 members out of 87 rating the stock outperform, and nine members rating it underperform. Among 23 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 18 give STAAR Surgical a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on STAAR Surgical is outperform, with an average price target of $8.00.
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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 has no position in any of the stocks mentioned. 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.