(FOXH) - Earnings of two cents/share blew away consensus of a loss of 14 cents/share

Foxhollow Technologies has dramatically exceeded earnings estimates for six quarters in a row. Five analysts have raised their numbers for both this year and next. Earnings estimates have significantly jumped over the past week. This year's numbers have gone from a loss of seven cents to a profit of 29 cents per share over the past seven days. Similarly, next year's estimates have risen nine cents to 85 cents per share. Full Analysis Foxhollow Technologies, Inc. (FOXH) engages in the design, development, manufacture, and sale of medical devices primarily for the treatment of peripheral artery disease. The company sells the SilverHawk Plaque Excision System, a minimally-invasive single-use catheter system designed for removal of plaque from arteries. It markets its product through its direct sales force in the United States primarily to interventional cardiologists, as well as to vascular surgeons and interventional radiologists. The company has collaboration agreement with Merck & Co., Inc., that would focus on analyzing atherosclerotic plaque removed from patient arteries as a means of identifying new biomarkers of atherosclerotic disease progression for use in the development of cardiovascular compounds in Merck's pipeline. The young company reported its first profitable quarter during the second quarter of 2006. Earnings per share of two cents blew away the consensus estimates which called for a loss of 14 cents. FOXH reported revenue of $48.2 million, a 68% increase over revenue of $28.7 million in the same period a year ago. "This was a milestone quarter for FoxHollow for a number of reasons, including our first quarter of profitability on a GAAP basis. Our financial performance speaks to increased adoption of the SilverHawk and growing confidence in the medical community that plaque excision is a valuable and important addition to the treatment options for PAD," noted Dr. John Simpson, who was named chief executive officer during the second quarter. FOXH has dramatically exceeded earnings estimates for six quarters in a row. Five analysts have raised their numbers for both this year and next. Earnings estimates have significantly jumped over the past week. This year's numbers have gone from a loss of seven cents to a profit of 29 cents per share over the past seven days. Similarly, next year's estimates have risen nine cents to 85 cents per share. The stock is currently trading at 34x next year's estimates of 85 cents per share, slightly above the company's projected long-term growth rate of 28.33%, giving the stock a PEG ratio of 1.20. This is quite reasonable for a company with such explosive growth prospects. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. This important indicator is updated daily on Zacks.com and is available to Zacks Premium subscribers. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home