The 10-second takeaway
For the quarter ended June 30 (Q2), Cynosure beat expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. GAAP earnings per share dropped to a loss.
Margins contracted across the board.
Cynosure logged revenue of $50.1 million. The three analysts polled by S&P Capital IQ predicted sales of $45.8 million on the same basis. GAAP reported sales were 27% higher than the prior-year quarter's $39.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at -$0.54. The three earnings estimates compiled by S&P Capital IQ forecast $0.17 per share. GAAP EPS were -$0.54 for Q2 versus $0.20 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 55.5%, 270 basis points worse than the prior-year quarter. Operating margin was -29.2%, much worse than the prior-year quarter. Net margin was -17.9%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $61.4 million. On the bottom line, the average EPS estimate is $0.18.
Next year's average estimate for revenue is $220.4 million. The average EPS estimate is $0.68.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 368 members out of 383 rating the stock outperform, and 15 members rating it underperform. Among 87 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 79 give Cynosure 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 Cynosure is buy, with an average price target of $36.75.
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