Cyberonics Q2 Profit Up, Results Top Estimates; Lifts FY14 Outlook - Quick Facts

(RTTNews) - Cyberonics Inc. (CYBX) reported that its second-quarter net income increased to $13.89 million or $0.50 per share, from $13.57 million or $0.48 per share in the same quarter last year.

The financial results for the fiscal quarter ended October 26, 2012 included a $1.3 million gain on warrant liability.

Adjusted non-GAAP income per share for the quarter grew to $0.50 from $0.44 last year. Analysts polled by Thomson Reuters expected the company to report earnings of $0.48 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter rose to $70.10 million from $62.96 million in the prior year quarter. Seven analysts had consensus revenue estimate of $69.54 million for the quarter.

During the recently completed quarter, Cyberonics repurchased 480,000 shares on the open market, leaving 260,000 shares available to be repurchased under the current program, which is expected to be completed in the current fiscal year.

Cyberonics increased guidance for fiscal 2014. Adjusted non-GAAP income from operations is now expected to be in the range of $86 million to $88 million, compared to previous guidance of $85 million to $88 million.

Adjusted non-GAAP net income for fiscal 2014 is now expected to be in the range from $54 million to $56 million, compared to prior estimate of $53 million to $56 million.

The company raised its fiscal 2014 adjusted non-GAAP earnings per share guidance to a range of $1.97 to $2.03 from the previous guidance of $1.93 to $2.01 per share.

Annual net sales are expected to be in the range of $281 million to $285 million, compared to previous guidance of $279 million to $283 million.

Street currently is looking for fiscal year 2014 earnings of $1.98 per share on annual revenues of $282.00 million.

Guidance for income from operations, net income and diluted earnings per share was adjusted by $7.4 million, $4.8 million (net of tax) and $0.17 per share respectively, for the litigation settlement recorded in the first quarter of fiscal 2014.