Tuesday December 11, 2012
by Tom Bishop, editor BI ResearchVascular Solutions (
VASC) is a medical device company with 60 products focused on coronary and peripheral vascular procedures.
Its three product categories are comprised of catheter products used to clear/open arteries, hemostat products used to control bleeding and vein products used primarily in treating varicose veins.
Q3 was a solid quarter with revenues of $24.6 million, advancing 13% after a one-time $2.6 million license revenue accrual is removed for the year ago Q.
Earnings of $0.16 per share exceeded both company guidance of $0.14 - $0.15 and the consensus of $0.15. Last year the company reported an unusually high $0.22, but this was really $0.10 excluding $0.12 for two extraordinary items.
Catheter products, its largest category, were up 15% to $15.3 million. Hemostat products were about flat at $5.6 million and the company has two strategies for getting that back on the plus side. Its smallest category, vein products, more than made up for this, advancing 46% to $3.6 million.
Q3 results allowed the company to goose up its revenue forecast for 2012 to a range of $98 - $99 million, which equates to growth of about 13%. EPS guidance is also up slightly to $0.58 to $0.59 (30% growth) including $0.16-$0.17 for Q4.
Note this includes $2.9 million in stock-based compensation and $1.4 million in amortization of intangibles, which most companies exclude. This would add an additional $0.15 a share to 2012, making it more like $0.73. These quality shares remains a Buy up to $15 per share.
Learn more about this financial newsletter at Tom Bishop's BI Research.Related articles:
