November 8, 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 BioScrip (Nasdaq: BIOS ) have popped over 12% today after largely meeting analyst expectations. The company hit EPS estimates on the nose, exceeded revenue estimates, and offered guidance that came in higher than what analysts had expected.
So what: BioScrip's third-quarter revenues came in at $170.4 million, with an EPS loss of $0.01, which analysts had expected. Adjusted EBITDA was $11.6 million, roughly flat compared to the year-ago quarter's $11.7 million result. The company also spent $38.3 million to buy out privately held InfuScience. For the full year, BioScrip expects to earn annualized adjusted EBITDA of between $62 million and $65 million, on between $660 million and $690 million in revenue.
Now what: BioScrip's revenue estimate is lower than its trailing-12-month result concluding in the second quarter, and adjusted EBITDA guidance is also lower than the standard GAAP net income for the trailing-12-month period. Although BioScrip's P/E is currently in the single digits, it's likely to grow significantly as a result of these lowered earnings after today's pop. It may be worth a closer look, but I'd demand more information before diving in with real money.
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