Why STAAR Surgical Company Shares Jumped
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 medical company STAAR Surgical jumped 18% today after reporting earnings.
So what: Revenue was up 14% in the quarter to $18.2 million, and earnings swung from a loss to $0.05 per share. Analysts only expected revenue to be $17.4 million and earnings of $0.02 per share, so the company easily beat expectations.
Now what: The company is gaining momentum with its implantable vision lens Visian ICL, which was recently approved in Argentina and Korea. Management thinks that product will continue to drive earnings going forward, and based on second-quarter numbers, there's a good chance it will. This is still a pretty speculative stock at 40 time forward earnings estimates, but with growth and now a profit on STAAR's side, I think it can outperform the market in the long term.
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Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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. The Motley Fool has a disclosure policy.
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