On Aug 12, Zacks Investment Research upgraded CryoLife Inc. CRY to a Zacks Rank #1 (Strong Buy).
Why the Upgrade?
The upgrade primarily came on the back of strong second-quarter 2016 results. Adjusted earnings of 13 cents per share outpaced the Zacks Consensus Estimate by 11 cents (550%).
Adjusted revenues increased almost 9% year over year to $46.2 million. On an adjusted basis, On-X revenues increased 7% to $9.5 million.
Tissue processing business (also known as Total Preservation Services) revenues increased 9.2%, driven by strong demand for CryoLife’s vascular tissue products. Total BioGlue and BioFoam revenues increased 11.4% in the quarter.
The strong second quarter results exhibited strength in CryoLife’s expanding product portfolio. The acquisitions of On-X and PhotoFix have been good additions in this respect.
CryoLife raised its full-year 2016 guidance. Total revenues are now forecasted to grow in the mid to upper single digit percentage range and the figure is estimated to be $180 million–$182 million.
Adjusted earnings are projected to be in the range of 32-34 cents, up from previous guidance range of 29-32 cents.
Estimate Revisions
The Zacks Consensus Estimate for full-year 2016 is currently pegged at 22 cents per share, which moved up a penny over the last 30 days.
Meanwhile, the Zacks Consensus Estimate for full-year 2017 has remained stable at 31 cents per share.
Other Stocks to Consider
One may also consider other favorably ranked stocks like IDEXX Laboratories IDXX, Masimo Corp. MASI and Natus Medical BABY in the same space. All the three stocks sport a Zacks Rank #1 (Strong Buy).
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