Solta Medical, Inc. (NASDAQ:SLTM) had a loss 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.
Solta Medical, Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased to $-0.01 in the quarter versus EPS of $-0.14 in the year-earlier quarter.
Revenue: Rose 6.32% to $34.5 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Solta Medical, Inc. reported adjusted EPS loss of $0.01 per share. By that measure, the company beat the mean analyst estimate of $-0.02. It missed the average revenue estimate of $37.75 million.
Quoting Management: “Our first quarter was softer than we had planned due to issues that have been identified and corrected,” said Stephen J. Fanning, Chairman, President and CEO of Solta. “In North America, our acquisition of Sound Surgical during the critical last month of the quarter led to some internal disruption impacting sales. Additionally, a manufacturing issue with the Liposonix transducer treatment tip adversely affected customer reorders and our ability to demonstrate our Liposonix system to potential new customers in North America. These developments masked the strong revenue growth generated by our international operations as well as the continued top line benefit of our recurring business model.”
Key Stats (on next page)…
Revenue decreased 13.32% from $39.8 million in the previous quarter. EPS decreased to $-0.01 in the quarter versus EPS of $0.00 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 $0.02 to a profit $0.01. For the current year, the average estimate has moved down from a profit of $0.08 to a profit of $0.05 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)