Vascular Solutions Earnings: Here’s Why Investors are Happy Now

Vascular Solutions Inc. (NASDAQ:VASC) 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 2.79%.

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Vascular Solutions Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 33.33% to $0.16 in the quarter versus EPS of $0.12 in the year-earlier quarter.

Revenue: Rose 9.71% to $26.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Vascular Solutions Inc. reported adjusted EPS income of $0.16 per share. By that measure, the company beat the mean analyst estimate of $0.15. It missed the average revenue estimate of $26.51 million.

Quoting Management: “Vascular Solutions continues to grow sales and earnings in a challenging medical device market through continuous new product innovation, a strategy which we maintained during the first quarter,” said Howard Root, Chief Executive Officer of Vascular Solutions. “The underlying strength of our operating performance in the first quarter was masked to a degree by the impact of the recall of our Guardian hemostasis valves, which we estimate resulted in $350,000 in lost revenue in addition to $550,000 in recall expenses. However, we expect to correct this situation in the second quarter and resume shipments of Guardian products in June without additional expense, and we are very excited about the second quarter’s global re-launch of the Venture(NYSE:R) catheter that we acquired last year from St. Jude Medical. With approximately ten additional new products in the pipeline scheduled for U.S. launch yet this year and 40 total new products in our development pipeline, we remain optimistic about our revenue and earnings growth for 2013 and beyond,” Mr. Root added.

Key Stats (on next page)…

Revenue increased 3.16% from $25.3 million in the previous quarter. EPS decreased 15.79% from $0.19 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 profit of $0.17 and has not changed. For the current year, the average estimate has moved down from a profit of $0.68 to a profit of $0.67 over the last ninety days.

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