The market is a surprisingly forgiving place sometimes, and that's working in the favor of medical device manufacturer Arrow International
Revenue was up about 3.5% this quarter as reported, though up a little more than that on a constant-currency basis. Though sales of cardiac care products dropped a bit, the central venous catheter and specialty catheter businesses both made solid showings. Speaking of the former, customer reaction to a new (and higher-priced) kit for central venous applications seems quite encouraging.
Below the top line, some of that encouragement wanes. Gross margins slipped, even if you add back an inventory step-up charge related to an overseas acquisition. Likewise, operating income also fell by a double-digit percentage even if you give them credit for non-comparable expenses. Granted, some of this is to be expected as the company brings on new manufacturing capacity and whatnot, and performance was better sequentially, but it does harken back to earlier warnings that there won't be quick fixes here.
With companies like Abbott Labs
Arrow's stock seems to have had its "relief run" and I wouldn't be of a mind to chase it. It's a good company, yes, but a little rooting around from diligent Fools can turn up some med-tech ideas with better valuations today.
For more Foolishness on the straight and narrow:
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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).