Cardiovascular Systems, Inc. CSII reported a loss of 20 cents per share for second-quarter fiscal 2023, narrower than a loss of 23 cents in the prior-year period. The reported loss was, however, wider than the Zacks Consensus Estimate of a loss of 15 cents.
Net Sales
Cardiovascular Systems’ revenues of $61.5 million improved 3.9% year over year. However, the top line missed the Zacks Consensus Estimate by 2.7%.
Segment Details
In the quarter under review, worldwide coronary revenues rose 13.9% year over year to $23 million.
Worldwide peripheral revenues decreased 1.2% year over year in the quarter to $38.5 million. Sporadic staffing shortages continued to impact peripheral procedural volumes, particularly for lower acuity patients with intermittent quantitation.
Cardiovascular Systems, Inc. Price, Consensus and EPS Surprise
Cardiovascular Systems, Inc. price-consensus-eps-surprise-chart | Cardiovascular Systems, Inc. Quote
Margins
The gross margin in the reported quarter was 69.9%, up 52 basis points (bps) year over year on a 2.1% rise in the cost of goods sold.
Selling, general and administrative expenses rose 3.1% to $41.6 million. Research and development expenses declined 7.4% to $9.5 million.
Adjusted operating expenses rose 3.9% to $51.2 million. The adjusted operating loss in the reported quarter was $8.2 million, almost in line with the year-ago adjusted operating loss.
Financial Position
The company exited Q2 fiscal 2023 with cash and cash equivalents of $59.8 million compared with $62.9 million at the end of Q1 fiscal 2023.
Update on Merger
On Feb 8, 2023, CSII entered into a merger agreement with Abbott Laboratories. Per the terms of the deal, Abbott will acquire Cardivascular Systems for a total expected equity value of approximately $890 million.
Post the completion of the deal, Cardiovascular Systems will continue as the surviving corporation and as a wholly-owned subsidiary of Abbott.
The boards of directors of both companies unanimously approved the Abbott Merger Agreement and the Abbott transaction.
Our Take
Cardiovascular Systems’ second-quarter fiscal 2022 loss per share was wider than the consensus mark. Revenues, too, missed the Zacks Consensus Estimate.
The gross margin in the quarter expanded despite an operating loss on mounting costs and expenses.
However, CSII has not provided any update on the 2023 guidance following the announcement of the merger agreement with Abbot.
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 Cardinal Health, Inc. CAH, McKesson Corporation MCK and Hologic, Inc. HOLX.
Cardinal Health, carrying a Zacks Rank #2 (Buy), reported second-quarter fiscal 2023 adjusted EPS of $1.32, beating the Zacks Consensus Estimate by 16.8%. Revenues of $51.47 billion outpaced the consensus mark by 2%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cardinal Health has a long-term estimated growth rate of 11.6%. CAH’s earnings surpassed estimates in two of the trailing four quarters and missed the same in the other two, the average being 6.4%.
McKesson, having a Zacks Rank #2, reported third-quarter fiscal 2023 adjusted EPS of $6.90, which beat the Zacks Consensus Estimate by 8.8%. Revenues of $70.49 billion outpaced the consensus mark by 0.02%.
McKesson has a long-term estimated growth rate of 10.4%. MCK’s earnings surpassed estimates in two of the trailing four quarters and missed the same in the other two, the average being 3.4%.
Hologic reported first-quarter fiscal 2023 adjusted earnings of $1.07 per share, beating the Zacks Consensus Estimate by 18.9%. Revenues of $1.07 billion surpassed the Zacks Consensus Estimate by 9.5%. It currently sports a Zacks Rank #1.
Hologic has a long-term estimated growth rate of 15.2%. HOLX’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 30.6%.
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Cardiovascular Systems, Inc. (CSII) : Free Stock Analysis Report
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