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 cardiac device manufacturer Thoratec
So what: This was another cut-and-dried case of top-line beats across the board. Thoratec reported a fourth-quarter profit of $0.38 per share (excluding one-time items) on sales of $109.4 million. This compared favorably to the consensus estimate of $0.33 in EPS on $107.6 million in sales. Thoratec's HeartMate II was the driving force pumping sales higher. The icing on the cake was Thoratec's fiscal 2012 guidance, which easily surpassed Wall Street's projections ($1.58-$1.68 versus $1.51).
Now what: Surgical devices are one of my favorite sectors to invest in because they often offer products in high demand regardless of economic conditions. As the world's population ages, the demand for surgical products is only bound to rise. Companies like Thoratec look well-positioned to take advantage of this long-term trend, and today's results simply emphasize how surprising the growth will be in this sector for decades to come.
Craving more input? Start by adding Thoratec to your free and personalized watchlist so you can keep up on the latest news with the company.
Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.
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