MedAssets Shares Jumped: What You Need to Know
Nov 4th 2011 3:25PM
Updated Nov 4th 2011 3:34PM
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of medical product maker MedAssets (NAS: MDAS) was miraculously cured today, sending the stock 19% higher.
So what: Revenue grew 50% to $143.7 million and adjusted earnings per share increased a penny to $0.26 per share. Analysts were only expecting revenue of $137.6 million and earnings per share of $0.17, so the results crushed what the "experts" thought.
Now what: When you take out the acquisition of Broadlane, the results aren't quite as eye-popping with adjusted revenue increasing only 2.5%. Nevertheless, beating expectations is always a welcome sight, and with shares trading at just 11 times forward earnings estimates, it looks like there's plenty of upside. MedAssets has now beaten estimates the last three quarters, and I think shares have more room to run.
Interested in more info on MedAssets? Add it to your watchlist by clicking here.
At the time this article was published Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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