IF their 4th-quarter and full-year results are anything to go by, the slumping medical aesthetics market is on the rebound, as Syneron Medical Ltd. (NSDQ:ELOS) and Cynosure (NSDQ:CYNO) report returns to profitability.
Both of the companies, which make cosmetic medical devices, posted strong double-digit sales growth for the 3 and 12 months ended Dec. 31, 2012.
Yokneam, Israel-based Syneron logged profits of $5.2 million, or 15¢ per share, on sales of $72.8 million for the 4th quarter, compared with a net loss of $8.0 million, or 23¢ per share, on sales of $61.0 million. That amounts to top-line growth of 19.3%. For the full year, Syneron reported losses of $1.3 million, or 4¢ per share, on sales of $263.6 million, slashing losses by 97.4% and posting sales growth of 15.5% compared with 2011.
CynoSure, based in Westford, Mass., said profits for its 4th quarter were $4.0 million, or 27¢ per share, on sales of $42.7 million, marking bottom-line growth of 272.9% on top-line growth of 25.1%. For the full year, CynoSure reported profits of $11.0 million, or 79¢ per share, on sales of $153.5 million. That makes for lower losses by some 444% and sales growth of 38.8%.
And each company handily beat Wall Street analysts’ Q4 earnings forecasts. Adjusted to exclude 1-time items, Syneron’s EPS reached 12¢, well above The Street’s expected losses of 2¢. For CynoSure, adjusted EPS for Q4 were 27¢, more than double the 13¢ expected by the boffins.
"We believe the financing environment in North America continues to improve, with more lenders interested in working with aesthetic practitioners," Syneron CEO Louis Scarfuri said during a conference call with analysts. CynoSure’s chief, Michael Davin, noted that North American sales grew 44% for the quarter and 66% year-over-year.
ELOS shares were trading at $10.65 apiece as of about 4 p.m. today, up 3.7% since its Feb. 12 earnings release. CYNO shares were up 5.1% to $28.40 each over the same period.