Natus Medical Earnings: Here’s Why Investors Like These Results

Natus Medical Inc. (NASDAQ:BABY) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 5.86%.

Natus Medical Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 75% to $0.21 in the quarter versus EPS of $0.12 in the year-earlier quarter.

Revenue: Rose 34.9% to $82.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Natus Medical Inc. reported adjusted EPS income of $0.21 per share. By that measure, the company beat the mean analyst estimate of $0.14. It missed the average revenue estimate of $83.45 million.

Quoting Management: “I am very pleased with both our record second quarter non-GAAP earnings and gross profit margin that increased to 60% from 57% last year,” said Jim Hawkins, President and Chief Executive Officer of the Company. “As we previously announced, weakness in international markets, particularly Europe and to a lesser extent Latin America, led to a second quarter revenue shortfall from the guidance we issued earlier in the quarter. This shortfall was in both our newborn and neurodiagnostic product categories. Domestic revenue was within our expectations.”

Key Stats (on next page)…

Revenue decreased 4.11% from $85.83 million in the previous quarter. EPS increased 40% from $0.15 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 $0.22 to a profit $0.18. For the current year, the average estimate has moved down from a profit of $0.83 to a profit of $0.76 over the last ninety days.

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