This medical device company beat estimates by two cents last quarter, and is forecast to grow at double-digit rates for the next few years.
Vascular Solutions (VASC)
From The Periscope Report
Our top stock pick for 2016 is Vascular Solutions (VASC), which makes catheters and guidewires that are used in vascular surgery. An exciting new product, freeze-dried plasma being developed with the U.S. Army, will hit the market in 2019, which could easily double the size of the company.
Vascular Solutions (VASC) beat estimates in the 1Q of 2016 for the 6th quarter in a row. Plus, management raised its guidance for the full-year 2016. Revenue is expected in a range of $163 - $166 million, up from prior guidance of $161 - $165 million. Earnings guidance for 2016 is $1.19 - $1.23 per share, up from prior guidance of $1.17 - $1.21 per share. For the 1Q ended March 2016, total revenue increased 14% YoY to $39.4 million, after increasing 13% YoY in the prior quarter. Net earnings increased to $0.25 per share, up from $0.21 per share a year ago, and beating the mean estimate for $0.23 per share.
During the 1Q of 2016, eight products represented 78% of total revenue and grew by a combined 15% (organic growth). During 2016, VASC expects to launch at least ten new products, all designed to meet clinical needs that are currently not being well addressed in the marketplace.
VASC has six products that will grow in the double digits for the next three years. It has another ten new products in development. It spends 12% of revenue on R&D. It has the freeze-dried plasma project with the U.S. Army.
Buy the stock now and hold on for ten years of strong growth.
Tom Byrne, The Periscope Report, 4025 Sunset Ridge Drive, Canyon Ferry Crossing, Helena, MT 59602, 406-465-4663, June 29, 2016