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Can Cyberonics Really Deliver A Record-Setting Quarter? Crowd & Experts Disagree

June 3, 2015 2:44 pm
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Shares of Cyberonics, Inc. (NASDAQ: CYBX) are climbing on Wednesday afternoon, as the company readies to announce its fourth quarter financial results before the market opens on Thursday.

According to Estimize, this could be a record-setting quarter, as the crowd is projecting consensus earnings of $0.65 per share on revenue of $77.83 million.

These estimates compare to the earnings of $0.55 per share on revenue of $74.8 million reported in the same quarter last year, and stand above the company’s record earnings of $0.64 per share on revenue of $72.07 million registered a couple of quarters ago.

Also to be noticed in the chart above, Wall Street analysts are slightly less bullish on the earnings front, and are modeling consensus earnings of $0.63 per share on revenue of $77.84 million.

Now, should a beat or a miss be expected? The graph above provides no definitive answer.

Below is a table featuring a history of Cyberonics’ actual results versus estimates.

Funds Betting On The Merger

As many investors know, Cyberonics recently announced that it will merge with Italy-based Sorin SpA in a stock-swap that values the companies at $2.7 billion.

Related Link: Cyberonics Jumps On Plan To Merge With Milan's Sorin SpA

Of note, the largest known shareholder as of the end of the first quarter was Jim Simons’ Renaissance Technologies, which, after trimming its stake by 9 percent, disclosed ownership of 2,065,194 shares worth about $134 million.

John Paulson’s Paulson & Co seems even more optimistic about what’s coming for Cyberonics, as the fund started a new position in the stock, with 1,723,800 shares over the first quarter.

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