Cardiovascular systems activity (CSII) down in response to COVID resurgence

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Cardiovascular Systems, Inc. CSII has suffered net losses for a long time, which is of concern. Fierce competition and an anticipated failure to grow overseas business continues to threaten this stock. The stock currently has a Zacks Rank # 5 (strong sell).

– Zack

Over the past year, cardiovascular systems have underperformed the industry. The stock lost 25.2% compared to the industry’s 0.3% rise.

Cardiovascular Systems ‘first quarter FY2021 loss was larger than a year ago figure and Zacks’ consensus estimate. The company’s revenue was also below the consensus mark and fell year over year. Peripheral revenues saw a significant decline in the reported quarter.

According to the company, the resurgence of COVID-19 and the associated staff shortages have disrupted referral patterns and had the greatest impact on more elective procedures like treatment with less acute peripheral claudication. Cardiovascular Systems noted that the severity and duration of the impact of COVID-19 was greater than expected and more pronounced due to the timing and geographic location of the delta push.

Profitably, Cardiovascular Systems has a long history of net losses since its inception in 1989 and although it generated a net profit of $ 1.7 million in fiscal 2018, sustainability is an issue. question. In fiscal 2021, the company reported a net loss of $ 13.4 million. In fiscal 2020 and 2019, the company reported net losses of $ 27.2 million and $ 0.3 million, respectively. Also in the first quarter of fiscal 2022, the situation remained unchanged, with the company reporting a net loss of 22 cents per share.

In addition, Cardiovascular Systems’ OAS products compete with various other products or devices for the treatment of vascular disease, including stents, balloon angioplasty catheters and atherectomy catheters, as well as products used in vascular surgery. The Company faces price competition from major competitors in the stent and balloon angioplasty market.

On a positive note, during the first fiscal quarter, Cardiovascular Systems’ coronary franchise recorded strong performance globally thanks to continued strength in Japan and the growing adoption of coronary OAS in Europe. Specifically, global coronary income increased 10%, with a 2% increase in the United States, driven by continued adoption of coronary support products despite a 2% decline in OAS coronary procedures. Outside the United States, coronary revenue increased to $ 3.2 million from same period last year due to continued strength in Japan combined with increasing adoption of coronary OAS in Europe. In Japan, the company currently has a 44% market share.
In the first fiscal quarter, the company sold $ 756 in supportive products for every coronary SV sold. The increase, quarter over quarter, shows the strong resilience of the company’s ISPs, even when coronary procedures have declined slightly. Sales of coronary assist products totaled $ 2.7 million in the current quarter. The company also certified 80 new coronary users during the quarter internationally, in line with previous quarters.
During the second fiscal quarter, Cardiovascular Systems expects to resume sequential growth. This quarter, the company will continue to train new PAD accounts and new users to deepen penetration in large hospital and OBL systems. It also plans to launch the full commercial launch of the Viper Cross Peripheral Catheter in the second fiscal quarter.

Choice of keys

Some better ranked actions in the wider medical space are Chemed Company CHE, National Vision Holdings, Inc. EYE and Western Pharmaceutical Services, Inc. WST, each carrying a Zacks Rank # 2 (Buy). You can see The full list of Zacks # 1 Rank (Strong Buy) stocks today here.

Chemed has a long-term profit growth rate of 7.7%. The company has beaten earnings estimates in three of the past four quarters and missed one, delivering a surprise of 5.6% on average.

Chemed has outperformed its industry over the past year. The title gained 3.7% against a 35.6% drop in the industry.

National Vision has a long-term profit growth rate of 23%. The company has beaten earnings estimates over the past four quarters, delivering an average surprise of 113.1%.

National Vision has outperformed the industry to which it belongs in the past year. The title gained 18.1% against a decline of 0.1% of the industry.

West Pharmaceutical has a long-term profit growth rate of 27.6%. The company has beaten earnings estimates over the past four quarters, delivering an average surprise of 29.4%.

West Pharmaceutical has outperformed the industry to which it belongs in the past year. The stock gained 43.6% compared to the industry’s 16.5% growth.

5 actions in the process of doubling

Each was selected by a Zacks expert as the # 1 favorite stock to earn + 100% or more in 2021. Previous recommendations climbed + 143.0%, + 175.9%, + 498.3% and + 673.0%.

Most of the stock in this report is flying under Wall Street’s radar, which provides a great opportunity to get into the ground floor.

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