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It has been about a month since the last earnings report for Cardiovascular Systems (CSII). Shares have lost about 6.6% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Cardiovascular Systems due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Cardiovascular Systems Q4 Loss Narrower Than Expected
Cardiovascular Systems reported loss of 14 cents per share for fourth-quarter fiscal 2021, narrower than loss per share of 43 cents in the prior-year period. The reported loss was also narrower than the Zacks Consensus Estimate of a loss of 17 cents.
Full-year loss per share was 35 cents compared with a loss of 79 cents a year ago. However, the metric lagged the Zacks Consensus Estimate by 7.9%.
Cardiovascular Systems’ revenues of $70.9 million improved 66.8% year over year. The top line surpassed the Zacks Consensus Estimate by 2.9%.
In fiscal 2021, revenues improved 9.5% to $258.9 million. The metric surpassed the Zacks Consensus Estimate by 0.8%.
In the quarter under review, worldwide coronary revenues grew 96% to $23.2 million. In the United States, coronary revenues increased 101% year over year, primarily led by a 102% increase in units sold and a 153% increase in the sale of coronary support products. Outside the United States, coronary revenues increased 72% to $3.6 million on continued strength in Japan combined with the successful introduction of coronary OAS in Europe.
Worldwide peripheral revenues increased 56% year over year to $47.8 million. In the United States, peripheral franchise revenue increased 55%, led by a 79% increase in OBL revenues and a 46% rise in hospital revenues.
Gross margin in the reported quarter was 70.9%, down 522 basis points (bps) year over year on a 103.4% rise in cost of goods sold.
Meanwhile, selling, general and administrative expenses were up 30.7% to $45.7 million. Research and development expenses declined 21.9% to $9.2 million.
Operating expenses rose 17.4% to $54.9 million. Operating loss in the reported quarter was $4.6 million compared with operating loss of $14.4 million in the year-ago period.
The company exited fiscal 2021 with cash and cash equivalents of $71.1 million, compared with $185.5 million at the end of fiscal 2020.
Cardiovascular Systems has provided financial guidance for fiscal 2022.
Revenues are expected in the band of $295-$305 million, indicating growth of 14% to 18% from fiscal year 2021. The Zacks Consensus Estimate for the same is currently pegged at $302.1 million.
The company expects net loss in the range of 2-3% of revenues.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month. The consensus estimate has shifted -93.33% due to these changes.
At this time, Cardiovascular Systems has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Cardiovascular Systems has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Cardiovascular Systems, Inc. (CSII) : Free Stock Analysis Report
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