The 10-second takeaway
For the quarter ended June 29 (Q2), Thoratec beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded. Non-GAAP earnings per share grew significantly. GAAP earnings per share expanded.
Gross margins contracted, operating margins dropped, net margins expanded.
Thoratec booked revenue of $130.5 million. The 14 analysts polled by S&P Capital IQ wanted to see revenue of $121.4 million on the same basis. GAAP reported sales were 10.0% higher than the prior-year quarter's $118.7 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 $0.52. The 15 earnings estimates compiled by S&P Capital IQ averaged $0.43 per share. Non-GAAP EPS of $0.52 for Q2 were 16% higher than the prior-year quarter's $0.45 per share. GAAP EPS of $0.40 for Q2 were 14% higher than the prior-year quarter's $0.35 per share.
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 68.6%, 100 basis points worse than the prior-year quarter. Operating margin was 25.3%, 70 basis points worse than the prior-year quarter. Net margin was 17.8%, 30 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $120.8 million. On the bottom line, the average EPS estimate is $0.42.
Next year's average estimate for revenue is $496.6 million. The average EPS estimate is $1.74.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 148 members out of 168 rating the stock outperform, and 20 members rating it underperform. Among 48 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 40 give Thoratec 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 Thoratec is outperform, with an average price target of $38.50.
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