Cardiovascular Systems (CSII) Guides Low 2Q16 Given Lingering Headwinds; Needham & Company Reiterates Buy

Needham & Company reiterated a Buy rating on Cardiovascular Systems (NASDAQ: CSII), and raised the price target to $19.00 (from $18.00), following the company's 1Q16 earnings report. Revenue was $43.9M (up 11% Y/Y after accounting for the end of the Asahi distribution agreement) vs. guidance of $43.9M and EPS was ($0.41) vs. guidance of ($0.41)-($0.43). For F2Q16, CSII expects revenue of $42.5-44.0M vs. consensus of $46.1M, and EPS of ($0.49)-($0.51) vs. consensus of ($0.34).

Analyst Mike Matson commented, "CSII's F1Q16 revenue and EPS were consistent with its 10/7/15 preannouncement but management guided below consensus for F2Q16 given lingering headwinds from its sales force turmoil. PAD Systems growth slowed given disruption in CSII's sales force while CAD Systems sales were also hurt and declined sequentially but grew significantly Y/Y resulting in overall revenue growth of 11% after adjusting for the Asahi distribution agreement. We maintain our Buy rating since we believe that revenue growth is bottoming and is likely to improve over the next few quarters and we believe that CSII's technology make it an attractive strategic asset."

For an analyst ratings summary and ratings history on Cardiovascular Systems click here. For more ratings news on Cardiovascular Systems click here.

Shares of Cardiovascular Systems closed at $15.91 yesterday.

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