Why Omnicell Shares Soared
Feb 1st 2013 3:44PM
Updated Feb 1st 2013 4:31PM
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 Omnicell , an automated medication and supply management solutions provider to the health care industry, popped as much as 13% after reporting its fourth-quarter earnings results.
So what: For the quarter, Omnicell recorded a whopping 43% increase in revenue to $90.2 million and adjusted earnings of $0.25. Although EPS was in line with expectations, sales came in $3.1 million higher than Wall Street had expected. Omnicell's management attributed record revenue and bookings in its acute care segment for its record year and is looking forward to further utilizing its acquisition of MTS Medication Technologies last year to fuel growth in 2013.
Now what: This isn't rocket science; Omnicell is in the right business at the right time. Health records and almost all things health care are being moved online and digitization of medications and product supply management is a mandate. Even after today's pop, at just 14 times forward earnings Omnicell could represent quite a bargain, and I'd suggest keeping it high up on your watchlist.
Craving more input? Start by adding Omnicell to your free and personalized watchlist so you can keep up on the latest news with the company.
While you can certainly make huge gains in biotech and pharmaceuticals, the best investing approach is to choose great companies and stick with them for the long term. In our free report "3 Stocks That Will Help You Retire Rich," we name stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of. Click here now to keep reading.
The article Why Omnicell Shares Soared originally appeared on Fool.com.Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.