Vascular Solutions (NSDQ:VASC) exceeded Wall Street’s expectations with its 3rd-quarter earnings, sending share prices up today.
Vascular Solutions posted profits of $2.7 million, or 16¢ per share, on sales of $28 million for the 3 months ended Sept. 30. That’s a profit gain of 4.2% on sales growth of 14.1% compared with the same period last year. Excluding an $812,000 settlement with Terumo Corp. (TYO:4543), adjusted earnings per share were 19¢, 2 pennies ahead of Wall Street’s 17¢ forecast.
The news sent VASC shares up 3.8% to $19.40 apiece as of about 12:30 p.m. today.
"Vascular Solutions reported another very strong quarter, with continued double-digit sales growth that reached a new record quarterly level, along with ongoing improvement in our operating margin despite the impact of the device tax and some unusually high levels of legal spending. Both our sales and adjusted EPS performance this quarter exceeded the top end of our guidance range. We achieved growth in all 3 of our product categories, and both our U.S. and overseas businesses showed solid performance. Despite the challenges in the global health care environment, Vascular Solutions has been able to sustain growth and improve profitability through our ability to continually develop, distribute, and acquire clinically-relevant new products. We view this as a sustainable business model. In addition, we are pleased to be able to put the Terumo litigation behind us, which will help to reduce our general and administrative expenses going forward," co-founder & CEO Howard Root said in prepared remarks.
Vascular Solutions raised its outlook for the rest of the year, saying it now expects adjusted EPS of 70¢-71¢, on sales of $109.4 million to $110.4 million, up from previous guidance of 66¢-70¢ on sales of $107 million to $110 million.
Fourth-quarter EPS are pegged at 19¢-20¢ on sales of $28.0 million to $29.0 million, the company said.