MWI Veterinary Supply Inc

Company Description

MWI Veterinary Supply is a leading distributor of animal health products to veterinarians across the United States of America. Products MWI sells include pharmaceuticals, vaccines, parasiticides, diagnostics, capital equipment, supplies, veterinary pet food and nutritional products. The company markets these products to veterinarians in both the companion animal and production animal markets.

32% Increase in Net Income

MWI announced second-quarter results on Apr 30 that included net income of $5.8 million, 32% higher than the same quarter last year. Revenues jumped 10% to $215 million.

Internet sales continue to grow, 36% this quarter, and are now 31% of total sales, up from 27% one year ago. Earnings per share were 47 cents, up from 36 cents last year and beat the consensus estimate by 10 cents.

The company has beat expectations in 4 of the past 5 quarters, with the remaining quarter meeting estimates.

Updated Guidance

Management updated revenue guidance to between $910 million and $925 million, a 9% to 11% year-over-year increase. Earnings per share are expected to be $1.80 to $1.85, after raising the bottom of the range by 5 cents.

Full-year estimates for 2010 are currently averaging $2.02. If the midpoint of the companies guidance is reached, as well as the 2010 consensus, year-over-year growth will be 13% in 2009 and 10% in 2010.

The Chart

Shares of MWIV have surged since the April earnings release. The stock is has been gaining steadily since early February. Take a look at the chart below.