Why Nxstage Medical Shares Are Moving

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 dialysis products specialist Nxstage Medical (Nasdaq: NXTM  ) popped 10% today after its third-quarter profit topped Wall Street expectations.

So what: The stock has been crushed over the past year on a string of disappointing quarters, but today's bottom-line beat -- per-share loss of just $0.04 versus the consensus loss of $0.06 -- suggests that things are beginning to turn around. While its Critical Care segment continues to be hurt by weak hospital spending, a 17% jump in Home revenue seems to be reigniting some optimism over its growth prospects going forward.

Now what: For the fourth quarter, management now sees a per-share loss of $0.04-$0.06 on revenue of $63 million-$65 million, which is pretty much in line with Wall Street estimates.

"We remain committed to increasing adoption of home, more frequent dialysis, and see multiple catalysts for growth," said founder and CEO Jeffrey Burbank. "With continued execution, we believe we can achieve over 14% annual growth in the Home for 2012."

More important, with the stock still off about 50% from its 52-week highs, there's plenty of upside left to benefit from that growth.

Interested in more info on Nxstage? Add it to your watchlist.


Read/Post Comments (0) | Recommend This Article (2)

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.

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: 2102265, ~/Articles/ArticleHandler.aspx, 8/23/2014 1:35:07 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...


Advertisement