Research Desk Line-up: ViewRay Post Earnings Coverage

LONDON, UK / ACCESSWIRE / November 22, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Natus Medical Inc. (NASDAQ: BABY), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=BABY, following the Company's reporting of its third quarter fiscal 2017 operating results on October 25, 2017. The maker of medical device for newborn care outperformed top- and bottom-line expectations. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Get more of our free earnings reports coverage from other constituents of the Medical Appliances & Equipment industry. Pro-TD has currently selected ViewRay, Inc. (NASDAQ: VRAY) for due-diligence and potential coverage as the Company announced on November 13, 2017, its financial results for Q3 2017 which ended on September 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on ViewRay when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on BABY; also brushing on VRAY. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=BABY

http://protraderdaily.com/optin/?symbol=VRAY

Earnings Reviewed

For the third quarter ended September 30, 2017, Natus Medical reported revenue of $122.6 million, reflecting an increase of 34.9% compared to revenue of $90.9 million reported in Q3 2016, owing to the addition of recently acquired Otometrics. The Company's revenue exceeded analysts' estimates of $122.41 million.

During Q3 2017, Natus Medical's GAAP gross profit margin was 60.5% compared to 63.9% reported for Q3 2016. The Company's non-GAAP gross profit margin for the reported quarter 61.1% versus 64.6% in the year ago same period. In Q3 2017, Natus Medical recorded approximately $7 million of depreciation and amortization (D&A) expense. The Company's share-based compensation was about $2.2 million during the reported quarter.

For Q3 2017, Natus Medical's GAAP net loss was $8.5 million, or $0.26 per share, compared to GAAP net income of $13.3 million, or $0.40 per diluted share, in Q3 2016. The Company's non-GAAP net income for the reported quarter totaled $13.1 million, or $0.40 per diluted share, compared to non-GAAP net income of $12.8 million, or $0.39 per diluted share, in the prior year's same quarter. Natus Medical's earnings exceeded Wall Street's estimates of $0.38 per share.

Natus Medical's Segment Results

During Q3 2017, the neurology business revenue increased 4.6% to $59.4 million on a y-o-y basis, and contributed 48% of total revenue compared to revenue of $56.8 million and 62% of total revenue during Q3 2016. The Company's revenue from Newborn Care business decreased 1.4% to $33.7 million on a y-o-y basis, or 27% of total revenue, compared to $34.2 million, or 38% of total revenue, during the year-earlier corresponding quarter. Natus Medical's revenue from Otometrics was $29.6 million, or 24% of total revenue, during Q3 2017.

In total, revenue from devices and systems contributed approximately 63% of total revenue in Q3 2017 compared to 61% in Q3 2016 period, while revenue from supplies and services was approximately 37% of total revenue in the reported quarter versus 39% in the 2016 period. The increase in device mix was driven partially by the addition of Otometrics, where device revenue was about 63%.

Revenue from domestic sales were approximately 56% in Q3 2017 compared to 69% in Q3 2016. The Company's revenue from international sales was approximately 44% for the reported quarter compared to 31% for the year-earlier same quarter. The change in mix was driven by Otometrics where approximately 76% of revenue is generated outside of the United States.

Cash Matters

Natus Medical's net cash increased by $52.1 million to $132.4 million during Q3 2017, due primarily due to new borrowings in anticipation of the acquisition of certain assets from Integra, and the Company ended the quarter with a net debt of $21.8 million. Natus Medical's cash flow from operations was about $4.43 million during the reported quarter. The Company's days sales outstanding increased 1 day to 87 days versus Q2 2017.

Financial Guidance

For Q4 2017, Natus Medical is forecasting revenue in the range of $145.0 million to $147.0 million and non-GAAP earnings per share in the band of $0.68 to $0.72. For the full year 2017, the Company raised its revenue guidance of $514.5 million to $516.5 million and increased its non-GAAP earnings per share in the range of $1.72 to $1.76.

Stock Performance

On Tuesday, November 21, 2017, the stock closed the trading session at $39.55, slightly up 0.51% from its previous closing price of $39.35. A total volume of 218.58 thousand shares have exchanged hands. Natus Medical's stock price surged 22.83% in the last three months and 15.14% in the past six months. Furthermore, since the start of the year, shares of the Company have rallied 13.65%. At Tuesday's closing price, the stock's net capitalization stands at $1.23 billion.

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