Earnings Preview: Cyberonics

Posted: Published on August 24th, 2012

This post was added by Dr Simmons

Leading neuromodulation company, Cyberonics Inc. (CYBX) is scheduled to report its first quarter fiscal 2013 results before the market opens on Tuesday, August 28, 2012. The company expects earnings per share (EPS) of 36 cents on revenues of $58 million during the quarter, according to the Zacks Consensus Estimates.

Cyberonics exceeded its expectations in the last four quarters. Over the past four quarters, average earnings surprise is a positive 15.73%. This implies that the company has surpassed the Zacks Consensus Estimate by this magnitude over the last four quarters.

Previous Quarter Highlights

Cyberonics reported EPS of 38 cents in the fourth quarter of fiscal 2012, up 46% year over year and surpassing the Zacks Consensus Estimate of 35 cents. For the full year, EPS came in at $1.28, a penny short of the Zacks Consensus Estimate but ahead of previous years adjusted EPS of $1.01.

Revenues increased 13% year over year during the quarter to $58 million, marginally beating the Zacks Consensus Estimate of $57 million. Cyberonics recorded robust growth in U.S. epilepsy sales (up 10% to $48 million) and international sales (up 33% at constant exchange rate or CER to $9 million). The company provides the vagus nerve stimulation (VNS) therapy for treatment of refractory epilepsy. During fiscal 2012 revenues were up 15% to $219 million, ahead of the Zacks Consensus Estimate of $217 million.

Cyberonics also provided guidance for fiscal 2013. The company expects to report revenues of $241$244 million and $70$72 million of income from operations resulting in EPS of $1.49$1.59.

The company noted that the anticipated amount of medical device tax, scheduled to be implemented from January 1, 2013, has not been considered in the guidance for income from operations but included in the EPS forecast.

Agreement of Estimate Revisions

Estimate revision trends among the analysts for the first quarter and the full fiscal year 2013 have been insignificant. Out of the nine analysts covering the stock during the quarter, only one analyst made a downward revision over the past 7 and 30 days, while no upward revision took place. The current fiscal year has experienced no estimate revision from the nine analysts covering the stock over the past 7 and 30 days.

We expect unfavorable currency to adversely impact Cyberonics first quarter performance. Moreover, the companys prominent presence in the European market, which is shrouded with macroeconomic challenges, might affect the companys sales growth. The analysts await better visibility on this matter.

The rest is here:
Earnings Preview: Cyberonics

This entry was posted in Uncategorized. Bookmark the permalink.

Comments are closed.