Thoratec Corp.

Thoratec Corporation (THOR - Snapshot Report) is coming off of an excellent quarterly announcement that showed a spike in revenue and another earnings surprise. Shares are also benefiting from a newly formed level of support.

Company Description

Thoratec Corporation provides cardiac support devices for use by patients with acute or chronic heart failure. Some of the products will pump blood through the heart for prolonged periods of time in the event of cardiac arrest. The company is headquartered in Pleasanton, California, employs more than 1,000 people internationally, and carries a market cap of $1.36 billion.

Another Earnings Surprise

On Oct 30 Thoratec announced third quarter results including a 44% increase in revenues. Total revenues for the quarter were $80.8 million up from $56.1 million, one year ago. Earnings per share came in at 13 cents, 86% higher than the 7 cents forecast by analysts.

The surprise was the third in the past 4 announcements.

Estimates Rising

Analysts are bullish as they have been upwardly revising estimates across the board. The full-year consensus estimate for 2008 is now 45 cents per share, up from 38 cents in the last 90 days. Given the consensus, the year-over-year growth rate is 168%.

The Chart

After pressuring resistance near $28 several times, shares broke through in December. Now the level is acting as support. Take a look at the chart below.