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 medical diagnostics company Alere Inc. (NYSE: ALR) surged 10% today after its quarterly results easily topped Wall Street expectations.
So what: The stock has soared over the past year on a string of market-topping quarters, and today's Q2 results -- adjusted EPS of $0.64 on revenue of $764 million versus the consensus of $0.48 and $720.3 million -- only reinforce that trend. Management cited double-digit growth in its diagnostics and infectious disease segments, as well as a 100% spike in diabetes test sales, for the strong quarter, prompting analysts to increase their growth estimates yet again.
Now what: Don't expect the operating momentum to slow anytime soon.
"Regarding organic revenue growth, we expect our current mid-single digit organic growth for 2013 to expand over the next 2 years to high single-digit growth by 2015," said Chairman and CEO Ron Zwanzinger in a conference call with analysts.
Of course, with the stock now up more than 70% year-to-date and trading at a PEG ratio above 1, much of that growth might already be baked into the price.
