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CryoLife (CRY) Earnings Beat Estimates, Revenues Lag in Q4

Leading medical device and tissue processing company, CryoLife, Inc.CRY posted fourth-quarter 2016 adjusted earnings per share of 12 cents, beating the Zacks Consensus Estimate of 8 cents. However, adjusted earnings came in a penny lower than the year-ago quarter.

Revenues of $45 million missed the Zacks Consensus Estimate of $47 million and were up 13% on a year-over-year basis. The increase was primarily driven by the acquisition of On-X Life Technologies in Jan 2016. This was partially offset by a decline in HeRO Graft and TMR revenues.

Stock Performance

The price performance of the stock has been unfavorable over the last three months. CryoLife registered a paltry return of 0.77%, lower than the Zacks classified Medical Instruments sub-industry's gain of almost 3.49%.

CryoLife, Inc. Price, Consensus and EPS Surprise

CryoLife, Inc. Price, Consensus and EPS Surprise | CryoLife, Inc. Quote

Quarterly Highlights

Product revenues came in at $28.9 million during the reported quarter compared with $23.9 million in the year-ago quarter. Of this, BioGlue and BioFoam contributed $16 million while On-X's share was $9.1 million. Of the rest, CardioGenesis cardiac laser therapy contributed $2.4 million, PerClot's share was $1 million and PhotoFix's share was $0.5 million.

Preservation services revenues came in at $16.1 million compared with $15.9 million in the year-ago quarter. Of this, Cardiac tissue contributed $7.4 million, while the rest came from by Vascular tissue.

Net income for the fourth quarter of 2016 was $2.9 million compared with $2.6 million for the fourth quarter of 2015.

Guidance

For the full year, CryoLife expects revenues in the range of $188-$192 million. Adjusted earnings are expected in the band of 40 cents to 43 cents.

Stocks to Consider

Currently, Cryolife has a Zacks Rank #3 (Hold).

Better-ranked stocks in the broader medical sector include Glaukos Corporation GKOS , Avinger, Inc. AVGR and Fluidigm Corporation FLDM . Notably, Glaukos sports a Zacks Rank #1 (Strong Buy) while Avinger and Fluidigm carry a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here .

Glaukos Corporation has a long-term expected earnings growth rate of approximately 25%. Notably, the stock registered an impressive one-year return of 180.8%.

Avinger projects sales growth of 30.7% for the current year. Additionally, the company posted a positive earnings surprise of 27% last quarter.

Fluidigm Corporation has a long-term expected earnings growth rate of 25%. The stock has added 12.1% over the last three months.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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