Cardiovascular Systems (CSII) Q1 Earnings Miss, Revenues Top
Cardiovascular Systems, Inc. CSII reported a loss of 27 cents per share for first-quarter fiscal 2023, wider than a loss of 22 cents in the prior-year period. The reported loss was also wider than the Zacks Consensus Estimate of a loss of 24 cents.
Net Sales
Cardiovascular Systems’ revenues of $59.7 million improved 2.2% year over year. The top line also topped the Zacks Consensus Estimate by 0.6%. The company registered strong growth across its coronary business.
Segment Details
In the quarter under review, worldwide coronary revenues rose 7.9% year over year to $20.9 million, led by strong growth in support devices and international expansion. The launch of the Scoreflex scoring balloon received a positive response and generated over $1.7 million in sales during the first quarter.
International revenues grew 40% year over year, with strong growth in each of the company’s key markets, including Japan, Europe, Asia Pacific, and Canada.
Cardiovascular Systems, Inc. Price, Consensus and EPS Surprise
Cardiovascular Systems, Inc. price-consensus-eps-surprise-chart | Cardiovascular Systems, Inc. Quote
Worldwide peripheral revenues decreased 1% year over year in the quarter to $38.8 million.Sporadic staffing shortages continued to impact peripheral procedural volumes, particularly for lower acuity patients with intermittent quantitation.
Margins
The gross margin in the reported quarter was 72%, down 347 basis points (bps) year over year on a 16.7% rise in the cost of goods sold.
Selling, general and administrative expenses rose 6.3% to $44.5 million. Research and development expenses declined 9.6% to $9.1 million.
Adjusted operating expenses rose 3.2% to $53.5 million. The adjusted operating loss in the reported quarter was $10.6 million compared with an adjusted operating loss of $7.8 million in the year-ago period.
Financial Position
The company exited Q1 fiscal 2023 with cash and cash equivalents of $62.9 million compared with $66.4 million at the end of fiscal 2022.
2022 Guidance
Cardiovascular Systems’ management reiterated its fiscal 2023 guidance with the assumption of continued improvement in U.S. hospital procedure volumes and no new COVID headwinds over the course of the year.
Full-year revenues are once again expected in the band of $255 million to $265 million. The Zacks Consensus Estimate for the same is currently pegged at $258.2 million.
The company expects net loss in the range of 9% to 11% of revenues. The Zacks Consensus Estimate for the metric is pegged at a loss of 67 cents per share.
Our Take
Cardiovascular Systems’ first-quarter fiscal 2022 loss per share was wider than the year-ago figure and the consensus mark. Revenues, however, exceeded the year-ago figure and topped the Zacks Consensus Estimate. The launch of the Scoreflex scoring balloon strongly contributed to Coronary sales in the quarter. However, lower procedure volumes due to hospital capacity issues and staffing shortages hurt peripheral sales growth.
The gross margin in the quarter contracted and the company incurred an operating loss on mounting costs and expenses.
Zacks Rank and Key Picks
Cardiovascular Systems currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are AMN Healthcare Services, Inc. AMN, Medpace Holdings, Inc. MEDP and Merit Medical Systems, Inc. MMSI.
AMN Healthcare, carrying a Zacks Rank #2 (Buy), reported third-quarter 2022 adjusted EPS of $2.57, which beat the Zacks Consensus Estimate by 10.3%. Revenues of $1.14 billion outpaced the consensus mark by 3.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AMN Healthcare has an estimated long-term growth rate of 3.3%. AMN’s earnings surpassed estimates in all the trailing four quarters, the average being 10.9%.
Medpace Holdings, sporting a Zacks Rank #1, reported third-quarter 2022 EPS of $2.05, which beat the Zacks Consensus Estimate by 39.5%. Revenues of $383.7 million outpaced the consensus mark by 8.1%.
Medpace Holdings has an estimated growth rate of 44.9% for the full-year 2022. MEDP’s earnings surpassed estimates in all the trailing four quarters, the average being 22%.
Merit Medical, carrying a Zacks Rank #2, reported third-quarter 2022 adjusted EPS of 64 cents, which beat the Zacks Consensus Estimate by 20.8%. Revenues of $287.2 million outpaced the consensus mark by 5.2%.
Merit Medical has an estimated long-term growth rate of 11%. MMSI’s earnings surpassed estimates in all the trailing four quarters, the average being 25.4%.
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