Why IPC's Shares Jumped

Before you go, we thought you'd like these...
Before you go close icon

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 IPC The Hospitalist Company (NAS: IPCM) were looking quite healthy today as they shot up as much as 13% in intraday trading after the company reported first-quarter results.

So what: Today's jump for IPC's stock is nice and simple -- the company reported its first-quarter numbers and investors liked what they saw. Revenue for the quarter clocked in at $130 million, a 14.5% increase from last year. The growth was driven by a 14.2% increase in patient encounters, for a total of 1.36 million during the three-month period. Costs rose as the company added hospitalists, and so profit didn't grow nearly as quickly as revenue, but the $0.50 in earnings per share was up from $0.46 in 2011 and was ahead of the $0.49 that analysts were expecting.


Now what: As much as investors like to see current-period results that top expectations, they tend to like it even more when a company's outlook is sunny. IPC's management just reaffirmed its full-year guidance in its earnings report, but the guidance range -- revenue of $520 million-$530 million and EPS of $1.96-$2.06 -- puts the company's estimates slightly ahead of what Wall Street was anticipating.

Want to keep up to date on IPC The Hospitalist Company?Add it to your watchlist.

At the time this article was published Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.Fool contributor Matt Koppenheffer does not have a financial interest in any of the companies mentioned. You can check out what Matt is keeping an eye on by visiting his CAPS portfolio, or you can follow Matt on Twitter @KoppTheFool or Facebook. The Fool's disclosure policy prefers dividends over a sharp stick in the eye.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners