Cynosure Earnings: Here’s Why Investors Like These Results

Cynosure, Inc. (NASDAQ:CYNO) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 0.47%.

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

Cynosure, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 100% to $0.12 in the quarter versus EPS of $0.06 in the year-earlier quarter.

Revenue: Rose 19.08% to $40.69 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Cynosure, Inc. reported adjusted EPS income of $0.12 per share. By that measure, the company missed the mean analyst estimate of $0.13. It beat the average revenue estimate of $38.51 million.

Quoting Management: “Higher revenue, a favorable product mix and strong operating leverage contributed to a positive first quarter for Cynosure,” said Cynosure’s President and Chief Executive Officer Michael Davin. “Laser product revenue increased 21 percent to $34.1 million from $28.1 million for the same period of 2012. Each of our distribution channels posted year-over-year gains, with particularly robust growth coming from our North American direct sales channel, our Asian subsidiaries and third-party distributors. These results speak to the success of both new product introductions in the United States and a number of recent marketing clearances we have received in key international territories.”

Key Stats (on next page)…

Revenue decreased 4.64% from $42.67 million in the previous quarter. EPS decreased 55.56% from $0.27 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.25 to a profit $0.22. For the current year, the average estimate has moved down from a profit of $0.87 to a profit of $0.83 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)