It’s been a roller-coaster ride for Volcano (NSDQ:VOLC) after posting Q2 earnings at the start of the week. The company posted red ink and missed analysts’ per-share estimates by 2 pennies, but Tuesday share prices jumped almost 8% based as 1 Wall Street analyst upgraded Volcano from "hold" to "buy."
During its 2nd quarter the San Diego, Calif.-based device maker posted a 180-degree swing from black to red compared to the same period last year. Volcano missed Wall Street per-share estimates of -2¢, posting instead a diluted per-share loss of 4¢.
However, the company’s non-GAAP per-share earnings, adjusted for special costs such as acquisitions and recovery of intangible property, came in at 6¢ per diluted share.
Yesterday, Canaccord Genuity analyst Jason Mills gave the company an upgrade from "hold" to "buy," news which was followed by a share price spike of almost 8%.
"Improving trends in the core IVUS business, easing Y/Y comps, strong margin expansion potential via manufacturing transition to Costa Rica in 2014, and several catalysts on the horizon (e.g., new products, clinical data), portend a more favorable risk/reward profile in the stock at current trading levels," said Mills’ report.
The medical imaging company posted 2nd quarter 2013 losses of $2.4 million, or 4¢ per diluted share, on sales of $101.3 million. That compared with Q2 2012 profits of $3.3 million, or 6¢ per diluted share, on sales of $95.4 million.
Volcano shares closed last night at $22.15, up 7.4% on the day.