I'm going to go out on a limb and guess that more than a few Aspect Medical
Aspect reported a reasonable quarter. Total revenue grew 21%, and gross margins expanded on both a GAAP and non-GAAP basis. While operating and net income results differ meaningfully, depending on whether you use GAAP or non-GAAP, there was growth in either case. The company also continues to place more units -- the ultimate driver of this razor/razor-blade business model.
The trouble for Aspect, as with many emerging med-tech companies, is guidance. Management trimmed its guidance a little, and the market trimmed its market cap a lot. Some of that is quasi-rational -- if you try to value stocks like Aspect with discounted cash flow analysis, you ultimately have to make some pretty hefty growth projections, and even modest revisions to those estimates that can take the resulting "fair value" down quite a bit.
But the fact remains that this is a technology leader in a market with only one real competitor. And that competitor, large medical products company Hospira
If you bought Aspect shares without fully appreciating how volatile med-tech can be (check out longer-term charts of Kyphon
For more medical missives from The Motley Fool:
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Fool contributor Stephen Simpson has no financial interest in any stocks mentioned (that means he's neither long nor short the shares).
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