The 10-second takeaway
For the quarter ended March 30 (Q1), Thoratec missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share dropped significantly. GAAP earnings per share dropped significantly.
Gross margins expanded, operating margins contracted, net margins shrank.
Thoratec notched revenue of $117.7 million. The 17 analysts polled by S&P Capital IQ expected to see net sales of $122.5 million on the same basis. GAAP reported sales were 7.1% lower than the prior-year quarter's $126.8 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 $0.41. The 17 earnings estimates compiled by S&P Capital IQ predicted $0.46 per share. Non-GAAP EPS of $0.41 for Q1 were 20% lower than the prior-year quarter's $0.51 per share. GAAP EPS of $0.31 for Q1 were 28% lower than the prior-year quarter's $0.43 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 70.2%, 90 basis points better than the prior-year quarter. Operating margin was 19.9%, 930 basis points worse than the prior-year quarter. Net margin was 15.4%, 470 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $123.0 million. On the bottom line, the average EPS estimate is $0.44.
Next year's average estimate for revenue is $499.7 million. The average EPS estimate is $1.81.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 150 members out of 173 rating the stock outperform, and 23 members rating it underperform. Among 47 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 38 give Thoratec a green thumbs-up, and nine 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 $40.19.
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