Cyberonics, Inc.’s stock has gained since the neurological device maker announced earnings growth in the three months ended July 27. But, according to GMIRatings, results may reflect a view through rose colored glasses.
The accounts in its regulatory filings result in Cyberonics having an AGR score of 24, indicating higher accounting and governance risk than 76% of comparable companies.
Cyberonics said on August 28 that its profit amounted to nearly $8.08 million during the quarter ending in July, up more than 17% compared to the same period of last year. The company had to write down $2.5 million during the quarter related to its investment in the epilepsy treatment technology developer NeuroVista Corp., but CEO Dan Moore noted that his team delivered improving sales for the sixth consecutive quarter.
The stock price has risen by nearly 12% since the announcement, to trade at around $50.71 intraday on Tuesday. Click here to read more.