Natus Medical Earnings: Here’s Why the Stock is Rising Now

Natus Medical Inc. (NASDAQ:BABY) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 6.98%.

Natus Medical Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 107.14% to $0.29 in the quarter versus EPS of $0.14 in the year-earlier quarter.

Revenue: Rose 41.16% to $90.5 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Natus Medical Inc. reported adjusted EPS income of $0.29 per share. By that measure, the company beat the mean analyst estimate of $0.26. It missed the average revenue estimate of $93.6 million.

Quoting Management: “I am pleased with our record fourth quarter non-GAAP profitability and improved gross profit margin,” said Jim Hawkins, Chief Executive Officer of the Company, “Although delayed orders and softness in some international markets and in our domestic neurology business caused our revenue to come in below guidance, organic revenue still grew approximately 2.3% on a year-over-year basis. We believe our fourth quarter results reflect improved operating efficiencies at Natus. We remain committed to achieving our goal of a 12% non-GAAP pretax profit for fiscal 2013.”

Key Stats (on next page)…