Why MWI Veterinary's Shares Jumped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of animal-health products specialist MWI Veterinary Supply (Nasdaq: MWIV  ) were bounding ahead today, gaining as much as 16% in intraday trading after the company reported fiscal third-quarter results.

So what: When you back out the impact of MWI's acquisition of Micro Beef Technologies, the year-over-year revenue growth for the quarter ending in June was "just" 19% in the U.S. and 20% in the U.K. rather than 35%. Even so, it's tough to argue with CEO Jim Cleary's assessment that "the results in the June quarter were again outstanding."

Aside from the strong revenue growth, MWI also managed to bring down selling, general, and administrative expenses as a percentage of revenue and it increased earnings per share 26%, to $1.15. Wall Street analysts were expecting just $1.05 in EPS on $525 million in revenue.

Now what: It's not just the past quarter that's exciting investors today though, because MWI also boosted its full fiscal-year outlook. For fiscal 2012, which ends in September, MWI's management nudged its revenue range up to $2.05 billion to $2.065 billion. On the bottom line, the company now estimates earnings per share of $4.14 to $4.20. The previous EPS range had been $3.96 to $4.06 and Wall Street analysts had been looking for $4.06 in per-share profit for the year.

Want to keep up to date on MWI Veterinary Supply? Add it to your watchlist.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

Fool contributor Matt Koppenheffer does not have a financial interest in any of the companies mentioned. You can check out what Matt is keeping an eye on by visiting his CAPS portfolio, or you can follow Matt on Twitter @KoppTheFool or Facebook. The Fool's disclosure policy prefers dividends over a sharp stick in the eye.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1964009, ~/Articles/ArticleHandler.aspx, 10/23/2016 6:06:35 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 day ago Sponsored by:
DOW 18,145.71 -16.64 -0.09%
S&P 500 2,141.16 -0.18 -0.01%
NASD 5,257.40 15.57 0.30%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

12/31/1969 7:00 PM
MWIV.DL $0.00 Down +0.00 +0.00%
MWI Veterinary Sup… CAPS Rating: ****