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BioTelemetry (BEAT) Scales New 52-Week High on Solid Q2

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Share price of BioTelemetry (BEAT - Free Report) rallied to a new 52-week high of $21.42 on Aug 18. This represents an impressive one-year return of approximately 62.6%, better than the S&P 500’s 7.4% over the same period.

Currently, BioTelemetry holds a Zacks Rank #2 (Buy). Notably, the stock has a market cap of $590.21 million.

Catalysts

BioTelemetry reported an impressive second quarter of 2016 with revenues totaling $52.7 million, a 17.5% increase over the prior-year quarter. Notably, adjusted earnings of 20 cents per share beat the Zacks Consensus Estimate by 4 cents and were up 66.6% on a year-over-year basis.

Healthcare and research revenues at BioTelemetry rose by $5.9 million and $2.5 million, respectively. The stock also witnessed an impressive 280 basis points (bps) expansion in gross margin, thanks to volume efficiencies, higher Medicare pricing and stringent cost control for shipping and maintenance.

BIOTELEMETRY Price and Consensus

 

BIOTELEMETRY Price and Consensus | BIOTELEMETRY Quote

In addition to the stellar quarterly results, we are looking forward to BioTelemetry’s  recent achievements including the 510(k) FDA approval for the next generation MCOT device. We believe that the completion of 8000 CardioKey services, integration of the ePatch business and the successful acquisition of VirtualScopics exclusively fortified the company’s position in research business.

Encouraged by the second-quarter performance and several recent strategic executions, BioTelemetry issued a strong third-quarter 2016 guidance. The company expects revenues in the range of around $53 million to $54 million (up 23% from the year-ago quarter) and adjusted EBITDA return in the band of 22% to 23% (up 38% year over year).

Estimate Revisions

The Zacks Consensus Estimate for fiscal 2016 increased by 8.7% to 75 cents over the last 30 days. Similarly, for fiscal 2017, estimates have scaled 10.5% to 84 cents over the same time frame.

Other Key Picks

Other favorably ranked stocks in the broader medical sector include CryoLife Inc. , Natus Medical and NuVasive Inc. . Notably, all the three stocks sport a Zacks Rank #1 (Strong Buy).

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