Cyberonics Results Top Forecasts

Medical device maker Cyberonics Inc., posted quarterly results that generally exceeded Wall Street’s expectations.
    Houston-based Cyberonics also said that its board had authorized a buyback of up to 3 million common shares.
    Cyberonics, which makes an implantable device used to treat epilepsy and severe depression, reported a net loss of $5.2 million, or 21 cents per share, on sales of $36 million in its fiscal fourth quarter ended April 28. In the year ago period, the company lost $6.5 million, or 26 cents per share, on sales of $26.7 million.      
    Thomas Gunderson, an analyst with Piper Jaffray, said the consensus estimate among analysts was for a loss of 30 cents.      
    Gains were driven by improved sales and a surprising decline in sales, general and administrative costs, he added.
    “SG&A is where the doubt was,” said Gunderson, who has an “outperform” rating on the stock and a share price target of $30.
    Lazard & Co. analyst Alexander Arrow, who has been negative on Cyberonics’ prospects for many months, lifted his “sell” rating earlier this week, noting that Cyberonics’ competitor Neuronetics unveiled “less-than-perfect” results from its pivotal trial testing its device on patients with depression.