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: Mindray Medical International
So what: Non-GAAP EPS of $0.36 grew 16% year over year and beat the consensus estimate of $0.33. GAAP EPS of $0.32 grew a mere 3% on revenue growth of 24%.
Now what: Management expects full-year non-GAAP net income to grow more than 10% on revenue growth of more than 16%, though it's likely an increase in share count will keep EPS growth below net income growth. The earnings release did not explain why expenses are rising faster than sales and dragging down earnings growth. Mindray Medical's expected EPS growth rate and subpar cash flow make it hard to justify its non-GAAP P/E ratio of 20 times.
Interested in more info on Mindray? Add it to your watchlist by clicking here.
Fool contributor Cindy Johnson does not own shares of any company named above. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.