May 11, 2010 (Chinavestor) Shares of Mindray Medical (NYSE:MR), a Chinese medical device manufacturer, fell -11.6% at the open on Tuesday following 2010 first quarter financial results. The company reported slight revenue and profit growth from 2009 Q1 but a significant decline from previous quarter.
Source: Reuters.com
Mindray Medical (NYSE:MR) said 2010 first quarter revenues reached $145.8 million vs. $188.8 million last quarter. Net income rose $36.197 million from $25.341 million a year ago but fell short of $70.4 million last quarter.
The best part of the announcement was a reaffirmation of previous guidance. The company expects 2010 full year revenue and net income growth of 17% from 2009 level. This translates to $185 million in revenues and $.46 EPS for the upcoming quarter - colored blue in the following chart.
Considering that the stock price of the company has been on a rise since December 2008, advancing 75% along the way, sharp correction today is justified. But for long-term investors, Minday Medical (NYSE:MR) remains a value stock that is priced right thanks to the double digit dip today. Buy into weakness - is the essence of the analysis above.
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