Cardiovascular Systems (NSDQ:CSII) posted third-quarter results yesterday that beat the revenue consensus on Wall Street but missed on earnings projections.
The St. Paul, Minn.-based company reported losses of -$6 million, or -15¢ per share, on sales of $63.27 million for the three months ended March 31, for a sales growth of 3.43% compared with Q1 2020.
Earnings per share were -15¢, 4¢ behind The Street, where analysts were looking for sales of $63.18 million.
“We finished the third quarter on a strong note. The increase in vaccinations and a simultaneous decrease in Covid hospitalizations in February and March resulted in improved procedure volumes during the second half of the quarter,” president and CEO Scott Ward said in a news release. “Third-quarter revenues increased 3.4% to $63.3 million and were led by our coronary franchise, due to strong procedure volume domestically, increased sales of procedure support products, and growing adoption of orbital atherectomy internationally. Peripheral revenues were flat as patients with claudication continued to defer evaluation and treatment. Office-based labs (OBLs) purchased nearly one-half of our peripheral unit volume during the quarter demonstrating that an increased number of complex peripheral procedures were performed outside the hospital. Throughout the pandemic, we have seen the OBL become another viable option for complex procedures, which we expect to continue even as the pandemic subsides.”
“As we head into our fourth quarter, we believe the majority of markets we serve have either returned to pre-Covid procedure levels or are poised to do so in the very near future. As a result, the momentum that we built in the latter half of the third quarter continued through early May and we are optimistic that we will benefit from the continued growth in peripheral and coronary procedure volumes throughout the rest of the fourth quarter.”
Cardiovascular Systems said it anticipates revenue of $67 million to $70 million to represent sequential revenue growth of 6% to 11% compared to the third quarter of fiscal year 2021.
Shares in CSII were down -12.09% to $34.16 apiece at market open. MassDevice’s MedTech 100 Index — which includes stocks of the world’s largest medical device companies — was up slightly.