On Mar 18, Zacks Investment Research downgraded
Heartware International Inc.
) to a Zacks Rank #4 (Sell) from a Zacks Rank #3 (Hold).
ABIOMED INC (ABMD): Free Stock Analysis
CYNOSURE INC-A (CYNO): Free Stock Analysis
SYNERON MED LTD (ELOS): Free Stock Analysis
HEARTWARE INTL (HTWR): Free Stock Analysis
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Why the Downgrade?
For fiscal 2014, seven estimates moved down in the past 30 days,
with just one upward revision in the same time frame, causing the
Zacks Consensus Estimate to drop by 22.5% to a loss of $2.72 per
share. The company reported negative earnings surprises in 2 of
the last 4 quarters with the last reported quarter clocking a
negative surprise of 15.0%.
Further, the long-term expected earnings growth for this stock
stands at 15.0%, lower than the industry growth of 17.3%.
Heartware continues to make losses due to higher costs and
expenses. For the fourth quarter of 2013, the company reported a
loss of $15.3 million or 92 cents per share, which is broader
than the Zacks Consensus Estimate of 80 cents. Following the
earnings release on Feb 27, 2014, shares of Heartware dropped
5.6% till the last closing date.
Heartware's cost and operating expenses continue to rise, which
may be attributable to inefficient cost management. For full year
2013, cost of revenues surged 49.9% to $76.5 million whereas the
total operating expenses increased by 30.2% to $179.0 million in
As of Dec 31, 2013, inventories stood at $40.9 million, up from
$38.4 million as of Dec 31, 2012 and $32.0 million as of Dec 31,
2011. Current liabilities increased 56.2% to $53.2 million as of
Dec 31, 2013 from $34.0 million as of Dec 31, 2012.
Other Stocks to Consider
Some better-ranked stocks that warrant a look in the medical
instruments industry are
Syneron Medical Ltd.
). While both Cynosure and Syneron Medical carry a Zacks Rank #1
(Strong Buy), ABIOMED holds a Zacks Rank #2 (Buy).