Micrus Endovascular Corp. (MEND) is up huge over the last nine months after bottoming out with the overall market in early 2009. The company’s strong Q3 results from November gave shares an extra push higher.
Company Description
Micrus Endovascular Corp. develops and manufactures implantable and disposable medical devices to treat vascular diseases. The company was founded in 1996, has a very strong international presence and has a market cap of $254 million.
Third-Quarter Results
Across all regions sales were up 3% to $21.5 million. Earnings came in better than expected at 22 cents per share, 16 cents ahead of the Zacks Consensus Estimate. It was the third time the company has beaten big in the last three quarters.
Micrus saw sales increase 15% to $11.2 in the United States, its biggest market. The company also gained in a number of key categories, with gross margin up 4 points from last year to 77% and general and administrative expenses down to $5.1 million from $6.4 million. Micrus’s cash position increased $7.2 million to $24.3 million.
Estimates
Estimates have been steadily rising over the last few months, with the current year adding 17 cents to 51 cents per share. The next-year estimate is up 12 cents in the same time to 55 cents, a respectable 6% growth projection.
As it stands, shares of MEND are trading with a forward P/E of 32X, a steep premium to the overall market.
The Chart
Shares of MEND have been rallying for most of the last nine months, recently hitting a new 52-week high at $15.99.
Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Surprise Trader Service. Zacks Investment Research
