TearLab Beats on Both Top and Bottom Lines

TearLab (Nasdaq: TEAR  ) reported earnings on May 13. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), TearLab beat expectations on revenues and exceeded expectations on earnings per share.

Compared to the prior-year quarter, revenue increased significantly. Non-GAAP loss per share dropped. GAAP loss per share dropped.

Margins grew across the board.

Revenue details
TearLab tallied revenue of $2.5 million. The four analysts polled by S&P Capital IQ expected revenue of $2.2 million on the same basis. GAAP reported sales were much higher than the prior-year quarter's $.4 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at -$0.11. The five earnings estimates compiled by S&P Capital IQ predicted -$0.12 per share. Non-GAAP EPS were -$0.11 for Q1 compared to -$0.12 per share for the prior-year quarter. GAAP EPS were -$0.30 for Q1 versus -$0.44 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 42.8%, much better than the prior-year quarter. Operating margin was -127.8%, much better than the prior-year quarter. Net margin was -346.4%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $3.1 million. On the bottom line, the average EPS estimate is -$0.12.

Next year's average estimate for revenue is $14.5 million. The average EPS estimate is -$0.43.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 14 members out of 36 rating the stock outperform, and 22 members rating it underperform. Among 16 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), two give TearLab a green thumbs-up, and 14 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on TearLab is outperform, with an average price target of $8.38.

Looking for alternatives to TearLab? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.

Add TearLab to My Watchlist.