September 14, 2012
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 imaging equipment specialist Analogic (Nasdaq: ALOG ) surged 12% today after its quarterly results and guidance topped Wall Street expectations.
So what: Analogic's fourth-quarter beat was so wide -- EPS of $0.96 on revenue of $151 million versus the consensus of just $0.71 and $141 million -- that analysts have no choice but to raise their price targets on the stock yet again. In fact, ultrasound and security technology revenue soared 20% and 47%, respectively, easing recent concerns over weak demand at its medical imaging segment.
Now what: Management now sees full-year organic revenue growth in the high single digits, versus Wall Street's expectation of about 7% growth. "Continuing to improve on our fiscal 2012 baseline, for fiscal 2013 we expect another year of high single-digit organic revenue growth on continued improving non-GAAP operating margin," President and CEO Jim Green said. With the stock surging to a new 52-week high today and trading at a 20-plus P/E, however, that bullish outlook might already be baked into the price.
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