Thoratec (NAS: THOR) reported earnings yesterday. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Thoratec beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share grew significantly.
Gross margins dropped, operating margins grew, and net margins expanded.
Thoratec recorded revenue of $126.8 million. The 19 analysts polled by S&P Capital IQ expected to see net sales of $112.0 million on the same basis. GAAP reported sales were 27% higher than the prior-year quarter's $99.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.51. The 17 earnings estimates compiled by S&P Capital IQ predicted $0.41 per share. GAAP EPS of $0.43 for Q1 were 59% higher than the prior-year quarter's $0.27 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 69.3%, 80 basis points worse than the prior-year quarter. Operating margin was 29.2%, 200 basis points better than the prior-year quarter. Net margin was 20.1%, 360 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $119.9 million. On the bottom line, the average EPS estimate is $0.45.
Next year's average estimate for revenue is $457.7 million. The average EPS estimate is $1.65.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 143 members rating the stock outperform and 20 members rating it underperform. Among 43 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 38 give Thoratec a green thumbs-up, and five 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 $37.89.
Over the decades, small-cap stocks like Thoratec have provided market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
Add Thoratec to My Watchlist.
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.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.