Wall Street analysts maintained their optimistic outlook on the company as well, with Leerink Swann analysts reiterating an "outperform" rating as Cynosure looks forward to a pair of new product launches in 2013.
Cynosure expects some time in 2013 to win FDA approval for its Picosure laser system, with indication to remove tattoos and pigmented lesions, and the company is preparing to launch its 1st home-use aesthetic device, which already won FDA clearance earlier this year.
"We expect Picosure will be an important source of incremental sales momentum in 2013 and beyond," Leerink Swann analysts Richard Newitter and Kathleen McGrath wrote in a note to investors.
Cynosure made $3.4 million in profit, or 26¢ per diluted share, on $37.1 million in sales during the 3 months ended Sept. 30, 2012. That’s a 31.1% bump in revenue and a swing from red to black for the aesthetics maker when compared with the same period last year. In Q3 2011 Cynosure had reported $28.3 million in sales and losses of $792,000, or 6¢ per share.
The company’s strong sales were about $4 million above Leerink Swann estimates and about $2 million higher than the average outlook on the company.
"It appears CYNO’s recently launched technology for cellulite reduction, Cellulaze, is continuing to gain acceptance in the field and contributed positively to CYNO’s 3Q results," Leerink analysts noted, adding that the technology was drawing in new customers as well as making waves with existing Cynosure customers.
That trends suggests "this new product cycle is providing CYNO with a stronger/broader footprint within the US AED market – not just converting existing accounts/upgrades," the analysts wrote. "Looking forward, [management] sees the majority of incremental sales stemming from outright ‘new’ Cellulaze workstation sales as the company has mostly worked through its upgradable installed base opportunity."
CYNO shares were up 9.3% to $26.68 as of about 2:45 p.m. today.
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