NEW YORK (TheStreet) -- Cynosure
(CYNO - Get Report) shares are down -9.9% to $22.90 on Tuesday following the release of the company's first quarter earnings results.
The company posted net earnings of $4.2 million, or 19 cents per diluted share, missing analysts consensus estimates by 4 cents.
Total revenues for the quarter increased 52% to $62 million on a year to year quarterly basis, missing analysts consensus guidance of $64.7 million.
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TheStreet Ratings team rates CYNOSURE INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate CYNOSURE INC (CYNO) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, increase in net income, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- CYNO's very impressive revenue growth greatly exceeded the industry average of 2.8%. Since the same quarter one year prior, revenues leaped by 74.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- CYNO's debt-to-equity ratio is very low at 0.05 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 2.55, which clearly demonstrates the ability to cover short-term cash needs.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Health Care Equipment & Supplies industry. The net income increased by 82.0% when compared to the same quarter one year prior, rising from $4.04 million to $7.35 million.
- Net operating cash flow has significantly increased by 219.94% to $18.54 million when compared to the same quarter last year. In addition, CYNOSURE INC has also vastly surpassed the industry average cash flow growth rate of -25.99%.
- The gross profit margin for CYNOSURE INC is rather high; currently it is at 62.18%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 9.85% trails the industry average.
- You can view the full analysis from the report here: CYNO Ratings Report