Why Bio-Reference Laboratories Inc. Shares Surged

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 Bio-Reference Laboratories (NASDAQ: BRLI  ) , a provider of clinical laboratory testing services, surged as much as 21% on the session following the release of its second-quarter earnings results before the opening bell.

So what: For the quarter, Bio-Reference produced $201.4 million in revenue, a quarterly record, and a 14% increase from the year-ago period. What makes the revenue increase even more impressive is that Bio-Reference pegged the negative effect from the polar vortex at $5 million. Net income, however, dipped year-over-year to $0.37 in EPS from $0.41, again caused by a $0.05 EPS decrease blamed on the weather. However, Wall Street was only expecting the company to earn $0.32 in EPS on $195.9 million in revenue, so it was a nice beat all around. Looking ahead, Bio-Reference suggested (as it had previously) that its third-quarter results will be relatively unchanged from the prior-year period, but that shareholders would bask in noticeable fourth-quarter year-over-year growth.

Now what: As long as Bio-Reference continues to focus on prudent cost controls I wouldn't be too concerned about weather occasionally affecting its bottom-line. In other words, the company is doing a good of controlling what it can and investors probably shouldn't punish it for weaker results caused by adverse weather. With a growth rate that has the potential to stay around 10% throughout the rest of the decade, and a forward P/E of 17 even following today's run higher, I'd suggest that even brighter days may be ahead for this company.

Bio-Reference shares soared today, but even it could struggle to keep pace with this top stock over the long run
Give us five minutes and we'll show how you could own the best stock for 2014. Every year, The Motley Fool's chief investment officer hand-picks one stock with outstanding potential. But it's not just any run-of-the-mill company. It's a stock perfectly positioned to cash in on one of the upcoming year's most lucrative trends. Last year his pick skyrocketed 134%. And previous top picks have gained upwards of 908%, 1,252% and 1,303% over the subsequent years! Believe me, you don't want to miss what could be his biggest winner yet! Just click here to download your free copy of "The Motley Fool's Top Stock for 2014" today.


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.

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: 2984415, ~/Articles/ArticleHandler.aspx, 11/23/2014 2:05:26 PM

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