What happened

Shares of BioTelemetry (NASDAQ:BEAT) rose over 17% today after the company announced second-quarter 2018 earnings. The medical-device manufacturer reported record quarterly earnings of $101.4 million, record quarterly adjusted EBITDA of $29.1 million, and achieved its 24th consecutive quarter of year-over-year revenue growth.

Additionally, the company announced that it has achieved $30 million in annualized synergies following the acquisition of LifeWatch, calling it a success. With year-over-year revenue up 74%, that would be difficult to argue against.

As of 3:21 p.m. EDT, the stock had settled to an 11.6% gain.

A man sitting on the floor using his laptop with cash money falling around him.

Image source: Getty Images.

So what

BioTelemetry appears to be in the right place at the right time. It made a name for itself by developing and marketing wireless devices that monitor and diagnose cardiac arrhythmias more efficiently and cost-effectively than traditional approaches. Historically, those products have provided 85% of the company's revenue. They also caught the attention of Apple, which, in November 2017, tapped the wireless medical-device leader to take part in the Apple Heart Study. 

As second-quarter 2018 results demonstrate, BioTelemetry is firing on all cylinders right now.


Q2 2018

Q2 2017

Percentage Change


$101.3 million

$58.1 million


Gross margin




Operating income

$11.1 million

$4.4 million


Net income

$10.4 million

$1.7 million


Source: Company Press release.

Given the company's track record of growing its business and the exciting growth opportunities ahead, including the collaboration with Apple and the launch of a new wireless device for blood glucose monitoring, investors are getting understandably excited about what's to come.

Now what

BioTelemetry is well-positioned to capitalize on market trends in wireless devices used for healthcare monitoring services. Exploiting that opportunity has earned it a $1.8 billion market valuation and what appears to be a sustainably profitable business. That said, investors will need to remain grounded to ensure that the company's valuation growth doesn't get too far ahead of realistic growth expectations.

Maxx Chatsko has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Apple. The Motley Fool has the following options: long January 2020 $150 calls on Apple and short January 2020 $155 calls on Apple. The Motley Fool has a disclosure policy.