The Gory Details on STAAR Surgical's Double Fumble

Seth Jayson, The Motley Fool
Updated

STAAR Surgical (NAS: STAA) reported earnings on Feb. 27. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended Dec. 28 (Q4), STAAR Surgical missed estimates on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue grew slightly. Non-GAAP earnings per share shrank. GAAP earnings per share.


Margins contracted across the board.

Revenue details
 STAAR Surgical chalked up revenue of $16.5 million. The five analysts polled by S&P Capital IQ predicted revenue of $17.6 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.

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

EPS details
 EPS came in at $0.01. The three earnings estimates compiled by S&P Capital IQ forecast $0.03 per share. Non-GAAP EPS of $0.01 for Q4 were 67% lower than the prior-year quarter's $0.03 per share. GAAP EPS were -$0.04 for Q4 against $0.00 per share for the prior-year quarter.

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 67.8%, 200 basis points worse than the prior-year quarter. Operating margin was -7.5%, much worse than the prior-year quarter. Net margin was -8.6%, 930 basis points worse than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $17.1 million. On the bottom line, the average EPS estimate is $0.03.

Next year's average estimate for revenue is $72.7 million. The average EPS estimate is $0.16.

Investor sentiment
 The stock has a two-star rating (out of five) at Motley Fool CAPS, with 80 members out of 88 rating the stock outperform, and eight members rating it underperform. Among 26 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 20 give STAAR Surgical 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 STAAR Surgical is outperform, with an average price target of $9.00.

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The article The Gory Details on STAAR Surgical's Double Fumble originally appeared on Fool.com.

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. The Motley Fool has no position in any of the stocks mentioned. 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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