Natus Medical shares jump on Q4, FY2015 EPS beat

Natus Medical (NSDQ:BABY) saw shares jump slightly after reporting Q4 and FY2015 earnings that beat the Street, with revenue numbers just squeaking under expectations.

Pleasanton, Calif.-based Natus Medical Inc reported profits of $8.5 million, or 26¢ per share, on sales of $100 million for the 3 months ended December 31. That amounts to an 18.3% bottom-line slide as sales grew 6.4%, compared with the same period last year.

Adjusted to exclude 1-time items, profits were up 29.8% from 2014 at $17 million, and earnings per share were 51¢. Analysts on Wall Street were expecting an adjusted EPS of 46¢, 5¢ lower than Natus reported for the quarter.

The company narrowly missed revenue expectations from the street, as they were looking for an extra $100,000 from Natus.

For the year, Natus reported profits of $37.9 million, or $1.14 per share, on sales of $375.9 million.

The company saw a 16.6% bottom-line gain on sales growth of 5.6% compared with its fiscal year 2014.

After excluding 1-time items, net income was $51.4 million and earnings per share were $1.55. Analysts on Wall Street were looking for an adjusted EPS of $1.50, which the company topped by 5¢. Revenue for the year was slightly off Street expectations, looking for $376 million.

Shares today have risen 2.38% in response, trading at $37.83 as of 12:00 p.m. EST.

“2015 was truly a great year for Natus.  4th quarter revenues hit $100 million for the first time in our history and our annual non-GAAP earnings per share grew 23%.  Our profit margins set record levels during the quarter and the full year as we achieved non-GAAP gross margins of 63.9% for the quarter and 62.6% for the year.  Our non-GAAP operating margin was 20.3% during the quarter and 19.0% for the year, clearly exceeding our 2015 annual goal of 18%. As previously announced, the revenue shortfall in the quarter versus our guidance was due to a delay in our Venezuela order. As we enter 2016, I remain extremely optimistic about our new service initiatives: Peloton, GND and NicView.  They all have tremendous revenue and profitability growth potential over the coming years. We also expect organic growth in both our core neurology and newborn care business units giving 2016 the potential to be another exciting year at Natus,” CEO Jim Hawkins said in prepared remarks.

Natus laid out expectations for the next quarter and fiscal year 2016. The company expects revenue between $96.5 and $97.5 million and non-GAAP earnings per share of 34¢ to 35¢ for the 1st quarter of 2016.

For the fiscal year 2016, Natus expects revenue between $445 and $450 million and non-GAAP earnings per share between $1.84 and $1.88.

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