Shares of Cyberonics Inc. (NASDAQ: CYBX) rallied on Wednesday after the medical device maker reported that fiscal fourth quarter income jumped 8.1%, driven by improved sales.
Revenue and adjusted earnings bettered Street’s estimates.
The Houston-based Company also provided upbeat guidance for the new fiscal year. Cyberonics expects earnings of $1.93 to $2.01 a share, on sales of $279 million to $283 million. Analysts’ consensus estimate was for earnings of $1.91 a share on sales $277 million.
For the fiscal fourth quarter ended April 26, the medical device maker reported a net income of $11.5 million or 41 cents a share compared to a profit of $10.7 million or 38 cents a share, in the year-earlier quarter. Stripping out onetime items such as tax adjustment linked to an investment write-down, non-GAAP (adjusted) earnings climbed to 46 cents a share. Sales soared 19% to $68.3 million, driven 15% growth in sales-volume. Analysts’ consensus estimate was for earnings of 43 cents a share on revenue of $64 million.
Commenting over the results, Cyberonics Inc’s President and Chief Executive Dan Moore said, “For the fifth year in a row, the company achieved record net sales and record operating margins.”
Still, operating margin shrank to 29.9% in the recently concluded quarter from 31.2% as expenses soared.
Several Wall Street analysts have commented over the stock, in the recent past. While analysts at Lazard Capital Markets last week slashed price target on the stock to $52 from $57, analysts at Canaccord Genuity lowered the price target to $49 from $59 on May 29th. However, both equity research firms maintain a “Buy” rating on the stock.
Separately, analysts at Jefferies Group reaffirmed a “Buy” rating on the stock but cut the price target down to $49 from $58, last week.
Overall, nine equity research firms keep a “Buy” rating on the stock, one firm has assigned a “Sell” rating while one firm maintains “Strong Buy” rating. The average price target currently is $53 with a “buy” rating.
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