Thoratec Beats Up on Analysts Yet Again

Seth Jayson, The Motley Fool
Updated

Thoratec (NAS: THOR) reported earnings on Feb. 8. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Thoratec beat slightly on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded and GAAP earnings per share improved significantly.

Gross margins expanded, operating margins were steady, net margins expanded.

Revenue details
Thoratec logged revenue of $109.4 million. The 20 analysts polled by S&P Capital IQ predicted a top line of $107.4 million. GAAP sales were 12% higher than the prior-year quarter's $97.6 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $0.38. The 19 earnings estimates compiled by S&P Capital IQ forecast $0.33 per share on the same basis. GAAP EPS of $0.25 for Q4 were 19% higher than the prior-year quarter's $0.21 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 67.1%, 80 basis points better than the prior-year quarter. Operating margin was 22.9%, about the same as the prior-year quarter. Net margin was 14.0%, 110 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $110.9 million. On the bottom line, the average EPS estimate is $0.39.

Next year's average estimate for revenue is $458.2 million. The average EPS estimate is $1.64.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 147 members out of 168 rating the stock outperform, and 21 members rating it underperform. Among 48 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 42 give Thoratec a green thumbs-up, and six give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Thoratec is outperform, with an average price target of $35.71.

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At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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