Cardiovascular Systems, Inc. CSII reported loss per share of 8 cents for third-quarter fiscal 2020 against earnings per share of 2 cents in the prior-year period. The reported loss however was a penny narrower than the Zacks Consensus Estimate.
Cardiovascular Systems’ revenues of $61.2 million declined 3.4% year over year. Meanwhile, the top line missed the Zacks Consensus Estimate by 4.4%.
In the quarter under review, global Coronary device revenues increased 2% year over year to $18.5 million.Domestic coronary revenues declined 2% from the year-ago period, primarily due to lower atherectomy unit volumes, partially offset by an increase in revenue from coronary support devices.
Global peripheral revenues decreased 6% to $42.6 million. Domestically, peripheral unit volumes decreased 6%.
Cardiovascular Systems, Inc. Price, Consensus and EPS Surprise
Cardiovascular Systems, Inc. price-consensus-eps-surprise-chart | Cardiovascular Systems, Inc. Quote
Total U.S. revenues declined 5% to $58.1 million, while International revenues totaled around $3.1 million, a 27% rise.
Gross margin in the reported quarter was 80%, down 77 basis points (bps) year over year due to 4.3% fall in gross profit.
Meanwhile, selling, general and administrative (SG&A) expenses edged up 0.1% to $41.3 million. Research and development (R&D) expenses escalated 8.8% to $9.9 million. As a result, operating expenses increased 1.7% to $51.3 million. Operating loss in the reported quarter came in at $2.4 million against operating profit of $0.6 million a year ago.
The company exited third-quarter fiscal 2020 with cash and cash equivalents of $69.6 million, compared with $65.5 million at the end of second-quarter fiscal 2020.
2020 Guidance Withdrawn
On Apr 1, Cardiovascular Systems, while facing a disruption in procedural volume as a result of the COVID-19 outbreak, announced the withdrawal of its fiscal 2020 financial guidance.The company noted that, through April,the magnitude of this disruption intensified as hospitals across the United States prioritized care for coronavirus patients.
Cardiovascular Systems reported dismal sales performance for its fiscal third quarter. According to the company, beginning the second week of March and through the end of the month, hospitals in the United States increasingly focused on the treatment of COVID-19 patients and largely implemented stay-at-home orders. In this span, the company witnessed a 25% decline in procedure volumes on a year-over=year basis for patients treated with orbital atherectomy devices. This significantly impacted the company’s domestic sales.
Following the company’s announcement of guidance withdrawal, the magnitude of this procedural disruption intensified.
Cardiovascular Systems currently has a Zacks Rank #3 (Hold).
Earnings of Other MedTech Majors at a Glance
Aphria APHA reported third-quarter fiscal 2020 adjusted EPS of 2 cents against the Zacks Consensus Estimate of a loss of 4 cents. Net revenues of $64.4 million outpaced the consensus estimate by 14.6%. The company carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Biogen BIIB currently carries a Zacks Rank #2. It reported first-quarter 2020 adjusted EPS of $9.14, surpassing the Zacks Consensus Estimate by 18.1%. Revenues of $3.53 billion outpaced the consensus mark by 3.2%.
Eli Lilly LLY delivered first-quarter 2020 EPS of $1.75, outpacing the Zacks Consensus Estimate by 12.9%. Revenues of $145.3 million surpassed the consensus estimate by 6.3%. The company currently sports a Zacks Rank #1.
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