Symmetry Medical Goes Negative

Seth Jayson, The Motley Fool
Updated

Symmetry Medical (NYS: SMA) filed its 10-K on Thursday. Here are the numbers you need to know.

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

Compared to the prior-year quarter, revenue shrank, and GAAP earnings per share shrank to a loss.

Margins shrank across the board.

Revenue details
Symmetry Medical logged revenue of $84.5 million. The two analysts polled by S&P Capital IQ predicted net sales of $80 million on the same basis. GAAP reported sales were 12% lower than the prior-year quarter's $96 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 $0.01. The four earnings estimates compiled by S&P Capital IQ forecast $0.04 per share on the same basis. GAAP EPS were -$0.09 for Q4 versus $0.12 per share for the prior-year quarter.

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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 17.1%, 630 basis points worse than the prior-year quarter. Operating margin was 4.9%, 450 basis points worse than the prior-year quarter. Net margin was -3.8%, 830 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $99.3 million. On the bottom line, the average EPS estimate is $0.09.

Next year's average estimate for revenue is $418.1 million. The average EPS estimate is $0.56.

Investor sentiment
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Symmetry Medical is outperform, with an average price target of $11.25.

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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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