Natus Medical Inc (BABY) is presently focusing on enhancing its offerings for the newborn care market. The company recently acquired technology company, Nicview, which pioneered video streaming of babies who are under treatment in the neonatal intensive care unit (NICU).
Using Nicview’s technology, any member of the family with a valid password can view the newborn at NICU through personal computers or mobile devices. Nicview offers a complete set of IP cameras, mobile viewing links and a service program that enables video streaming.
We believe that the new Nicview offering will gain significant traction among hospital nurseries, which will drive top-line growth in the long run.
Natus Medical’s frequent new product launches and an innovative pipeline for both the newborn care and neurology platforms is a key growth catalyst. Based on the strong product line and impressive third-quarter results, the company provided an optimistic fourth-quarter outlook.
Natus Medical expects revenues in the range of $92 million to $94 million for the fourth quarter. Meanwhile, non-GAAP earnings are forecasted in the range of 37 cents to 39 cents. The mid-point of the guided range is in line with the Zacks Consensus Estimate.
Natus Medical also raised its non-GAAP earnings guidance for full-year 2014, which is now expected in the band of $1.23 to $1.25 (up from $1.20 to $1.23). Revenue guidance was also revised up to a range of $353.8 to $355.8 million (previous guidance was $347.5 to $352.5 million).
We also believe that innovation in the product pipeline will help Natus Medical fight off competition from the likes of Johnson & Johnson (JNJ), Astro-Med and NeuroMetrix.
Currently, Natus Medical has a Zacks Rank #3 (Hold). Other stocks with a better rank are ABIOMED (ABMD) and AngioDynamics (ANGO). Both 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