Cyberonics' ($CYBX) stock soared nearly 7% Nov. 21 in the wake of record fiscal 2014 second-quarter sales reported by the neurostimulation device company. That good news has also led to revised, higher earnings guidance for the rest of the fiscal year.
The Houston, TX, operation's stock closed at $67.49, up 6.92% after a day of pretty robust trading. Investors essentially responded well to news that Cyberonics generated $70.1 million in sales for the quarter, up from more than $62.9 million booked in the fiscal 2013 second quarter. Net income grew, but at a more moderate pace. It surpassed $13.8 million, versus more than $13.5 million in net income booked during the same period a year ago.
"Our estimates suggest that new patient additions in absolute numbers were the highest in eight years," Cyberonics President and CEO Dan Moore said in a statement.
The results were encouraging enough that Cyberonics boosted its guidance for the rest of the 2014 fiscal year. Net sales are now expected to climb to between $281 million and $285 million, versus the $279 million to $283 million stated in previous guidance.
The company said its net sales globally and in the U.S. ($57.9 million) hit records. Additionally, sales grew internationally by nearly 10%.
Cyberonics is probably best known for its Vagus Nerve Stimulation Therapy system, which is FDA approved to treat refractory epilepsy and treatment-resistant depression by way of an implant that delivers electrical pulses to the vagus nerve and sold in a number of global markets.
But Cyberonics said it made progress during the quarter advancing new products, including the submission of its AspireSR generator for European regulatory approval. The company also continues to evaluate data from its ANTHEM-HF study assessing Autonomic Regulation Therapy to treat patients with chronic heart failure.
As well, Cyberonics repurchased 480,000 shares as part of an ongoing share repurchasing program expected to be completed in fiscal 2014.
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