Cyberonics Posts Upbeat Q4 Profit, But Revenue Misses Estimates

reported better-than-expected earnings for the fiscal fourth quarter, but the company's sales missed analysts' expectations. The Houston, Texas-based company reported quarterly net income of $10.5 million, or $0.40 per share, compared to $18.4 million, or $0.68 per share, in the year-ago period. Excluding items, the company's adjusted earnings climbed to $0.64 per share from $0.55 per share. Its revenue slipped 1 percent year-over-year to $74.1 million, while revenue climbed 5 percent on a constant currency basis. Analysts were expecting a profit of $0.63 per share on revenue of $77.4 million. The average estimate among 8 Estimize users was for earnings of $0.64 per share and revenue of $77.71 million. U.S. net product sales gained 2 percent to $59.4 million, while international net sales climbed 17.5 percent to $14.7 million on a constant currency basis. In fiscal 2015, the company purchased 875,000 shares for $49 million on the open market. "For the seventh consecutive year, the Cyberonics team delivered record net sales and operating income," commented Dan Moore, Cyberonics' President and Chief Executive Officer. "We are pleased to report continuation of our consistent multi-year sales and profit growth. We achieved our two most important regulatory approvals with the recent announcement of our U.S. approval for the AspireSR generator, along with the CE Mark approval of the VITARIA™ generator announced earlier this year. These two products provide a solid foundation for continued growth for the company." Cyberonics shares fell 2.07 percent to $68.00 in pre-market trading.