Hi-Tech Pharmacal Co (HITK) estimates are surging following the latest earnings report, which showed earnings rise more than 600%.
Company Description
Hi-Tech makes generic and branded pharmaceuticals, both over-the-counter and prescription. The company focuses on liquid and semi-solid forms for ophthalmic, otic, and inhalable products.
Quarterly Results
On Dec 9 Hi-Tech reported second-quarter results that showed sales increased by 64%, to just under $41 million. This led to a surge in net income, which was up almost 7 fold, to $7.4 million.
Earnings per share came in at 60 cents, 28 cents higher than the Zacks Consensus Estimate. This was the third consecutive earnings surprise.
Estimates Jump
Full-year estimates for fiscal 2010 are now averaging $2.06, up from $1.42 over the past 30 days. This is compared to 78 cents last year.
The Zacks Consensus Estimate for next year is $1.41, while this is lower on a year-over-year basis, it is still almost double last year’s figure.
Shares of HITK are trading at less than 20 times next year’s forecast. The PEG ratio, based on a 5-year growth rate, is under 0.9 times.
Hi-Tech is operating quite efficiently, with a net profit margin of more than 15%, twice the industry average. Its ROE is almost 23%, about 6.5% higher than its peers.
The Chart
Investors piled into HITK following the latest earnings release, driving shares higher. The stock still has plenty of momentum and could continue to rise.
Zacks Growth Trader serviceZacks Investment Research