Cogentix (CGNT) Q4 Earnings and Revenues Miss Estimates
Cogentix Medical, Inc. CGNT reported adjusted loss of 14 cents per share in the fourth quarter of 2016. The earnings figure came wider than the Zacks Consensus Estimate of a break-even. The reported figure was also broader than the loss of a penny in the year-ago quarter.
Net sales from continuing operations fell to $13.2 million from $13.6 million in the fourth quarter of 2015. The decline is attributable to a decrease in Industrial and Airway Management revenue. It was partially offset by an increase in Urology revenue. Net sales also missed the Zacks Consensus Estimate of $14 million.
Stock Performance
The price performance of the stock has been unfavorable over the last three months. Cogentix Medical shrunk by 29.56% versus the Zacks classified Medical Instruments sub-industry’s gain of almost 5.14%.
Quarter Details
Urology Segment revenue in the reported quarter came in at $11.8 million versus $11.2 million in the year-ago quarter. Of this revenue, from PrimeSight endoscopy technologies, business totaled $4.1 million, up $0.6 million or 18% from the comparable year-ago period. Revenue from Urgent PC revenue business totaled $5.5 million compared to $5.6 million in the comparable year-ago period. This comprised unit growth in the U.S. of 4% offset by lower average selling prices. Macroplastique business revenue in the quarter came in at $1.9 million, reflecting an increase of $0.1 million from the prior-year period.
Industrial and Airway Management Segment revenue in the reported quarter came in at $1.4 million versus $2.5 million in the year-ago quarter.
Gross margin in the reported quarter was 69.8%, up 580 basis points from the 64.0% gross margin in the year-ago period. Operating expenses in the quarter totaled $8.8 million, representing a decrease of more than $0.6 million from $9.4 million in the same period of the prior year. The decrease is primarily attributable to lower sales expense. This was partially offset by higher research and development expenses.
Operating profit for the reported quarter came in at $0.5 million against operating loss of $0.7 million in the year-ago period. Net loss came in at $18.6 million compared with net loss of $1.1 million in the comparable year-ago period.
Financial Condition
Cash and cash equivalents were $9.4 million as of Dec 31, 2016 against $2.0 million as of Dec 31, 2015. There were no borrowings under the company's $7.0 million line of credit as of Dec 31, 2016.
Cogentix Medical, Inc. Price, Consensus and EPS Surprise
Cogentix Medical, Inc. Price, Consensus and EPS Surprise | Cogentix Medical, Inc. Quote
Zacks Rank & Key Picks
Cogentix Medical has a Zacks Rank #3 (Hold).
Better-ranked stocks in the broader medical sector include Addus HomeCare Corporation ADUS, Fluidigm Corp. FLDM and Penumbra Inc. PEN. All the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Addus HomeCare has a long-term expected earnings growth rate of approximately 15%. Notably, the stock has an impressive one-year return of 58.7%.
Fluidigm has a long-term expected earnings growth rate of 25%. The company posted a positive earnings surprise of 1.6% in the last quarter.
Penumbra has a long-term expected earnings growth rate of approximately 20%. Notably, the stock has an impressive one-year return of almost 23%.
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