) to buy.
Analyst William Plovanic says fourth-quarter revenues of $27.8 million were below his and the consensus estimates of $29 million; this is the first quarter in the past eight quarters that the company didn't beat his estimates. He notes Cyberonics blamed the revenue miss on confusion over new patient confidentiality rules, a decline in elective surgeries due to the weak economy, and a restructure of its sales force.
While Cyberonics upped the fiscal 2004 (Apr.) revenue guidance to over $128 million, and raised the earnings per share estimate to 45 cents, he cut the $130.4 million fiscal 2004 revenue estimate to $123.1 million, and cut the 55 cents earnings per share to 45 cents due to uncertainty over the full benefit of a sales force restructuring, and slowing revenue growth from sales of its epilepsy treatment. He cut the $30 target to $26.