On Jan 6, 2014, Zacks Investment Research upgraded BioTelemetry, Inc. (BEAT) to a Zacks Rank #1 (Strong Buy).
Why the Upgrade?
BioTelemetry’s strong third-quarter 2014 results and innovative product pipeline are the primary reasons responsible for the upgrade.
BioTelemetry reported a better-than-expected third quarter 2014, whereby sales and earnings managed to beat the respective Zacks Consensus Estimate. Notably, BioTelemetry has delivered positive earnings surprises in 2 of the last 4 quarters, with an average beat of more than 100%.
In the quarter, revenues increased 35% on a year-over-year basis to $43 million. EBITDA increased 37% to $6 million. The acquisitions of Mednet and BMS further helped the company to generate solid revenue growth in patient services.
Going forward, substantial volume growth is expected in BioTelemetry’s base business on the back of significant product launches. The next generation mobile Telemetry system and the low-cost Holter should help the company to gain even more market share.
The company has also reached a settlement with Cigna Corp., under which the latter will reinstate coverage of BioTelemetry’s Mobile Cardiac Outpatient Telemetry service (MCOT). This will definitely work in favor of BioTelemetry’s long-term prospects as it will guarantee better penetration.
Estimate Revisions
The Zacks Consensus Estimate for 2014 increased 50% (4 cents) over the last 30 days to 12 cents per share. For 2015, over the same time frame, the Zacks Consensus Estimate surged nearly 74% to 40 cents.
Other Stocks to Consider
Some other stocks worth considering in the medical services industry are The Advisory Board Company (ABCO), BG Medicine (BGMD) and Catamaran Corp (CTRX). While The Advisory Board Company sports the same rank as BioTelemetry, BG Medicine and Catamaran Corp carry a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment