Hanger Orthopedic Group, Inc. (HGR) recently spiked to a new all-time high after reporting a very solid fourth-quarter earnings surprise of 30%. With three consecutive earnings surprises and rising estimates, this Zacks #1 rank stock has a leg up on the momentum field.
Company Description
Hanger Orthopedic Group, Inc. owns and operates orthotic and prosthetic patient-care centers in the United States. The company was founded in 1861 by a Civil War veteran who lost his leg. Hanger has a market cap of $873 million.
Hanger has seen big gains since last September, with shares recently blasting higher to a new all-time high on strong Q4 results that handily beat expectations.
Fourth-Quarter Results
Revenue for the period was up 10% from last year to $226 million. Earnings also looked good, coming in at 52 cents, 30% ahead of the Zacks Consensus Estimate, where the company has an average earnings surprise of 13% over the last three quarters.
The revenue gain was driven by a 6.2% increase in same-store sales in the company’s patient-care segment. Hanger’s Distribution center was also strong, with sales up 8.7% from last year.
Financial Profile
With a few good quarters in the bag, Hanger’s cash and equivalents jumped $24 million from just last quarter to $96 million. Its total debt is down $5 million from last year to $405 million.
Estimates
We saw some decent movement in estimates off the good quarter, with the current year up 10 cents to $1.65 while the next-year estimate added 15 cents to $1.89, a solid 15% growth projection.
Not only does HGR have momentum, it also has value, trading with a forward P/E of 17X against its peer average of 18X.
6-Month Chart
On the chart, HGR had been grinding higher since September before jumping to a new all-time high on the good quarter. Look for support from the long-term trend on any weakness. Take a look below.
Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the Zacks Momentum Trader Service.
HANGER ORTHOPED (HGR): Free Stock Analysis Report
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