“We remain bullish about Vascular Solutions’ (VASC) prospects for solid top-line growth and expect operating margin expansion in the second half of 2012 and in 2013 on solid revenue growth, expanding gross margins and OpEx spending control. We reiterate our BUY rating and increase our price target to $18.00 from $15.00.
“We expect VASC to continue to add new products through both internal development and M&A, and think its 89-person sales force is an important, leverage-able asset, which could help the company exceed even our current EPS expectations in 2012/2013, which we increase today. ...
Second Straight Beat and Raise
“Second quarter revenue of $24.7 million (+12% Y/Y) beat our $23.4 million estimate and the $24.2 million consensus. EPS of $0.15 (+19% Y/Y) were better than our $0.13 (+3% Y/Y) estimate and the $0.13 consensus. 2012 guidance increased to revenue of $97.5-$99.5 million, from $96-$98 million and EPS of $0.57-$0.59, from $0.53-0.57. Third quarter 2012 guidance was set at $24.5-$24.9 million with EPS of $0.14-$0.15, above the consensus coming in to the quarter of $24 million/$0.14.
“GuideLiner continued to impress, generating $3.7 million in sales (+41% Y/Y and 14% Q/Q). ClosureFAST reprocessing contributed $1 million in Q2 up from $0.5 million in Q1 and VASC reiterated guidance of $3-$5 million. Micro-introducers, Langston and SuperCross also contributed to 14% overall catheter growth. We increase our 2012 revenue and EPS to $98.9 million (+14%) and $0.58 (+28%).”
- Jason R. Mills, Canaccord Genuity Research, July 25, 2012