Hi-Tech Pharmacal Co. Inc. (HITK) continues to soar, this time on record sales and another earnings surprise.
Company Description
Hi-Tech makes branded and genetic pharmaceutical products. The company’s areas of specialty are in liquid and semi-solid dosages as well as ophthalmic and inhalant products.
Record Results
On Sep 9 Hi-Tech announced record net sales of $43.5 million, up 175% from the same period last year. Net income grew to $8.7 million, up dramatically from $1.5 million one year ago.
Earnings per share came in at 61 cents, more than triple the Zacks Consensus Estimate of 18 cents. This was the company’s third surprise in the past 4 quarters.
Analysts React
Following the report the Zacks Consensus Estimate spiked to $1.42, up from 89 cents after the sole covering analyst raised their forecast. This would be the equivalent of an 82% earnings growth rate.
Share of HITK are still trading at a good value following the excellent report. They are exchanging hands at about 15 times earnings, with a PEG ratio of 0.7 times.
The Chart
The past 2 quarterly reports have sent shares of HITK flying. Take a look at the chart below, and make sure to keep an eye on that earnings calendar.
