(MDTH) - Growth Stock - Two of the past four quarters have seen earnings surprises over 100%

Medcath only has one analyst covering the stock, but he raised his numbers for this year and next. Two of the past four quarters have seen earnings suprises over 100%. As would be expected, earnings estimates have been shooting higher. Over the past month, this year's projections have jumped 31% to 42 cents per share. Similarly, next year's estimates have increased 31% to 85 cents per share. MedCath Corporation (MDTH) engages in the ownership and operation of hospitals in partnership with physicians. The company focuses on the diagnosis and treatment of cardiovascular disease. In addition to hospitals, it owns and/or manages cardiac diagnostic and therapeutic facilities. The company also offers consulting and management services to cardiologists and cardiovascular surgeons. Its services are offered through mobile cardiac catheterization laboratories. As of September 30, 2005, the company owned and operated 12 hospitals with a total of 727 licensed beds in Arizona, Arkansas, California, Louisiana, New Mexico, Ohio, South Dakota, and Texas. MDTH reported fiscal third-quarter earnings that easily surpassed analyst expectations. MedCath reported net income of $5.4 million, or 30 cents per share. This exceeded the consensus estimate by 18 cents, or 150%. That's up from net income of $2.7 million, or 14 cents per share, in the same period last year. Revenue increased 6.3 percent to $191.1 million. "This quarter's solid revenue growth and financial performance reflect the commitment that our organization has made to improving our operations and growing our business, while maintaining our commitment to providing quality care," says Ed French, MedCath's chief executive. "We have re-established operating momentum in certain markets, which is important as we continue to evolve from a development company to a strong operating company with a continued focus on growth." Medcath only has one analyst covering the stock, but he raised his numbers for this year and next. Two of the past four quarters have seen earnings surprises over 100%. As would be expected, earnings estimates have been shooting higher. Over the past month, this year's projections have jumped 31% to 42 cents per share. Similarly, next year's estimates have increased 31% to 85 cents per share. The stock is currently trading at 29.7x next year's estimates, above the long-term growth rate of 20%, giving the stock a PEG ratio of 1.48. 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