Kensey Nash Corp.

Kensey Nash Corp. (KNSY - Snapshot Report) has once again reported record earnings and should post double-digit growth for the next 2 years.

Company Description

Kensey Nash Corporation designs, develops, manufactures, and processes proprietary biomaterials products for the orthopedics, cardiology, drug/biologics delivery and wound care markets. The company also is involved with cardiovascular medical technology, specifically, arterial revascularization and puncture closure devices.

Kensey intends to leverage its proprietary knowledge and expertise to develop new products and technologies and to explore additional applications for its products.

EPS More than Doubles

On Jan 28 Kensey announced its second-quarter earnings for fiscal 2009 that included earnings per share of 44 cents. The figure was 110% higher than last year's 21 cents, and 10% above analyst estimates of 40 cents. This is the second consecutive quarter the company has posted record earnings.

Total revenue and net sales both rose 6% year-over-year to $20.8 million and $14 million, respectively. The impressive growth propelled earnings past Kensey's previous guidance of between 40 and 42 cents.

Double-Digit Growth

Full-year estimates have been holding steady over the past 3 months and are projecting excellent growth rates. The consensus estimate for fiscal 2009 is currently $1.67, or a 29% growth rate. Estimates for 2010 are averaging $1.85, or a 10% growth.

Given these estimates, shares are currently trading at great valuations. A share of KNSY is going for just 11 times forward earnings.

The Chart

Shares of KNSY have been picking up momentum over the past few months. On Feb 26 there was a sharp sell off, but if the stock can recover quickly, expect the momentum to continue. Take a look at the chart below.