Palomar Medical Technologies Earnings: Here’s Why Investors are Buying Shares Now

Palomar Medical Technologies Inc. (NASDAQ:PMTI) had a loss 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 0.88%.

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Palomar Medical Technologies Inc. Earnings Cheat Sheet

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

Revenue: Rose 22.11% to $23.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Palomar Medical Technologies Inc. reported adjusted EPS loss of $0.06 per share. By that measure, the company missed the mean analyst estimate of $0. It beat the average revenue estimate of $20.26 million.

Quoting Management: Joseph P. Caruso, Palomar’s President, Chief Executive Officer and Chairman of the Board of Directors, commented, “We are pleased with the progress that we have made with our distribution expansion and introduction of new products. This quarter we focused on driving initial product placements with our Vectus diode hair removal system in our international distribution network and additional luminaries and reference sites around the world. The feedback from the field remains strong and we believe that the Vectus could quickly become a leading product in the aesthetic laser market. We have invested in key technology that we believe gives us a competitive advantage in terms of speed and consumer satisfaction. Light-based hair removal continues to be the largest segment of the aesthetic light-based market. The Icon continues to drive top-line growth, which is also driven by some of our proprietary and unique technologies, like our Max G and Lux 1540 hand pieces for the treatment of pigmented lesions, vascular lesions and wrinkles and the Skintel melanin optical measurement technology. We believe that the combination of Vectus and Icon provides best-in-class technology for many of the non-invasive high-volume aesthetic light-based treatments performed in physician offices today.”

Key Stats (on next page)…

Revenue decreased 0.98% from $23.43 million in the previous quarter. EPS decreased to $-0.06 in the quarter versus EPS of $0.12 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.01 to a profit $0.03. For the current year, the average estimate has moved up from $0 to a profit of $0.18 over the last ninety days.

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

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