Natus Medical Incorporated (NTUS) Tops Q3 EPS by 8c, Revenues Beat; Offers FY20 EPS/Revenue Guidance Above Consensus
Natus Medical Incorporated (NASDAQ: NTUS) reported Q3 EPS of $0.09, $0.08 better than the analyst estimate of $0.01. Revenue for the quarter came in at $102.8 million versus the consensus estimate of $94.4 million.
“We are very encouraged by the rate of business recovery in the third quarter. Our revenue grew by 21% compared to the second quarter of 2020. The revenue increase was led by Neuro and Hearing & Balance, respectively. Our Newborn Care end market continues to be the least impacted by the pandemic compared to last year. Although, revenues remain below historical levels, we generated $7.5 million of cash flows from operations, paid down $20.0 million of debt and returned to a net cash position. Looking ahead, we expect further business recovery in the fourth quarter,” said Jonathan Kennedy, President and Chief Executive Officer of Natus.
“We expect revenues from all three of our end markets to increase sequentially in the fourth quarter. Our supplies revenue increased sequentially 26% during the third quarter, indicating a return toward a more normal pace of hospital activity. Device sales increased from the previous quarter as well, up 21%, highlighting an increase in capital spending. Our backlog and pipeline rose in the fourth quarter compared the third quarter, increasing the confidence in our outlook for the fourth quarter,” Mr. Kennedy continued.
Natus Medical Incorporated sees Q4 2020 EPS of $0.19-$0.31, versus the consensus of $0.19. Natus Medical Incorporated sees Q4 2020 revenue of $104-114 million, versus the consensus of $105.4 million.
Natus Medical Incorporated sees FY2020 EPS of $0.20-$0.31, versus the consensus of $0.11. Natus Medical Incorporated sees FY2020 revenue of $401-411 million, versus the consensus of $394 million.
- For the fourth quarter 2020, the Company's revenue guidance is expected to be between $104.0 million and $114.0 million and non-GAAP earnings per share guidance is expected to be between $0.19 and $0.31.
- For the full year 2020, the Company's revenue guidance is expected to be between $401.0 million and $411.0 million and non-GAAP earnings per share guidance is expected to be between $0.20 and $0.31.
- The Company's non-GAAP earnings per share guidance excludes charges for amortization expense associated with intangible assets from prior acquisitions, certain other expenses, and related tax effect, which the Company expects to be approximately $4.1 million and $26.1 million for the fourth quarter 2020 and full year, respectively, and which the Company expects will reduce GAAP earnings per share by approximately $0.12 and $0.77 for the respective periods. Guidance for the fourth quarter assumes a steady, but gradual increase in our business and does not consider the potential of a significant COVID-19 resurgence and its impact, if any, on the economy and our customers.
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