Back to top

Press Releases

The Zacks Analyst Blog Highlights: Thoratec, HeartWare, Merit Medical, Mesa Laboratories and Cantel Medical

THOR HTWR MMSI

 ZacksTrade Now

For Immediate Release

Chicago, IL – December 13, 2012 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Thoratec Corp (THOR - Analyst Report), HeartWare (HTWR - Snapshot Report), Merit Medical (MMSI - Snapshot Report), Mesa Laboratories and Cantel Medical .

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Wednesday’s Analyst Blog:

Thoratec Soars to 52-Week High

Shares of Thoratec Corp (THOR - Analyst Report) reached a 52-week high of $39.50 on Tuesday, December 11, 2012. The medical device stock continues to edge past resistance levels and soared to another 52-week high. The closing price as of December 11, 2012 was $39.23, which represented a solid annual return of about 28%.

The stock carries a short-term Zacks #1 Rank (Strong Buy).  

Growth Drivers

A profound mix of solid third quarter earnings, raised guidance, HeartMate II approval in Japan, expanded geographical reach and share buybacks are driving the stock price.

With respect to earnings surprise, Thoratec has topped the Zacks Consensus Estimates in six of the last seven quarters with an average beat of 14.3%. Its third quarter adjusted earnings per share of 44 cents easily surpassed the Zacks Consensus

Estimate of 33 cents as well as the year-ago earnings of 34 cents per share.

Total revenues improved 15% on a year-over-year basis to $117.8 million in the quarter, surpassing the Zacks Consensus Estimate of $112 million. Growth was led by higher volume of the HeartMate II product line (up 27% year over year) as well as the higher adoption of Destination Therapy (DT) in the domestic market.

Thoratec revised its financial forecast for 2012. The company expects revenues between $477 million and $483 million compared with the prior guidance of $460 million and $470 million. The updated guidance includes higher sales estimates for the HeartMate II product line and solid expansion of the ventricular assist device (VAD) market.

For 2012, earnings per share are expected to be in a band of $1.79 and $1.83 compared with the prior guidance of $1.67 and $1.73.

Thoratec continued its momentum in the offshore market, especially in Western Europe. The company witnessed higher adoption of its offerings in newer markets like Turkey, where it expects to capture further market share in the near-term. However, HeartWare (HTWR - Snapshot Report) was the first to gain a foothold in Turkey.

Meanwhile, the recent approval of HeartMate II for bridge-to-transplantation (BTT) in Japan, the second largest market for medical devices, is a lucrative route to enter the Asia-Pacific market and garner incremental revenues. The demographic trends and increasing healthcare expenditure in Japan should allow for improved growth profile.

Capital allocation in the form of share buybacks should further boost investor sentiment. Last month, Thoratec announced a share buyback program of $150 million.

Estimates Inch Up

The Zacks Consensus Estimate for 2012 increased approximately 8.1% to $1.61 per share over the last 60 days. The current estimate implies year-over-year growth of 16.49%.

For 2013, the Zacks Consensus Estimate rose by 5.1% over the same time frame to $1.66 per share, implying year-over-year growth of 3.42%.

Valuation

Based on 2012 earnings estimates, Thoratec is trading at a price-to-earnings ratio (P/E) of 24.4x, a 20% premium to the peer group average of 20.3x. The price-to-sales (P/S) ratio of 4.9x represents a 39.6% premium to the peer group average of 3.51x. The company’s strong business fundamentals justify the premium.

About the Company

Pleasanton, California-based Thoratec is a leading developer of innovative devices for advanced heart failure. Founded in 1976, the company has a market capitalization of roughly $2.11 billion. Thoratec has strong presence in the U.S. and Europe with a first mover advantage in the market it serves. 

We currently have a long-term Outperform recommendation on Thoratec. Medical devices stock carrying a Zacks #1 Rank are Merit Medical (MMSI - Snapshot Report), Mesa Laboratories and Cantel Medical .

 

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Follow us on Twitter: http://twitter.com/zacksresearch

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Media Contact
Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com

http://www.zacks.com

 

 

 

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%