Please ensure Javascript is enabled for purposes of website accessibility
Free Article Join Over 1 Million Premium Members And Get More In-Depth Stock Guidance and Research

ZOLL Shares Popped: What You Need to Know

By Matt Koppenheffer - Updated Apr 6, 2017 at 10:05PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Is this meaningful? Or just another movement?

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 resuscitation-device maker ZOLL Medical (Nasdaq: ZOLL) were alive and well today, gaining as much as 19% in intraday trading on heavier-than-average volume.

So what: The obvious driver for today's gains was ZOLL's fiscal-second-quarter results. Compared to last year's second quarter, ZOLL's revenue rose 14% to $123 million, while earnings per share jumped 59% to $0.27. Wall Street analysts were looking for $0.20 in per-share profit on $121 million in sales.

Now what: ZOLL's LifeVest product was a big winner during the quarter, with year-over-year sales jumping 60% to $27 million. While this is good from a top-line perspective, it's even better for profitability, as the LifeVest is a higher-margin product and helped boost the company's gross margin from 55% to 58%. ZOLL's CEO expects further strong growth from LifeVest and further gains in profitability as a result. Of course, investors who want a piece of this growth are going to have to pay up for it -- ZOLL's stock currently trades at 34 times expected fiscal 2012 earnings.

Want to keep up to date on ZOLL? Add it to your watchlist.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
624%
 
S&P 500 Returns
140%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 12/06/2021.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Our Most Popular Articles

Premium Investing Services

Invest better with the Motley Fool. Get stock recommendations, portfolio guidance, and more from the Motley Fool's premium services.