Solta Medical Earnings: Here’s Why the Stock is Falling Now

Solta Medical, Inc. (NASDAQ:SLTM) 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 down 0.40%.

Solta Medical, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $0.02 in the quarter versus EPS of $-0.43 in the year-earlier quarter.

Revenue: Rose 15.94% to $43.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Solta Medical, Inc. reported adjusted EPS income of $0.02 per share. By that measure, the company beat the mean analyst estimate of $0. It missed the average revenue estimate of $45.97 million.

Quoting Management: “Our second quarter results were disappointing with revenue below our expectations attributable in large part to the competitive environment in North America, and the outlook for the remainder of the year was not acceptable to the Board,” Mr. Sieczkarek commented. “North America revenue was negatively impacted by competitive pricing pressures on system sales, especially on Liposonix systems where ASPs fell approximately 25% as we matched the aggressive pricing practices of the competition. On a worldwide basis, combined unit placements for Thermage, Clear + Brilliant and Liposonix systems rose year-over-year by over 25%.”

Key Stats (on next page)…

Revenue increased 25.14% from $34.52 million in the previous quarter. EPS increased to $0.02 in the quarter versus EPS of $-0.04 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a loss of $0.02 and has not changed. For the current year, the average estimate is a profit of $0.01, which is the same with that ninety days ago.

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

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