RadNet Touches New 52-Week High - Analyst Blog

Shares of RadNet Inc. RDNT hit a new 52-week high of $3.97 in mid-day trading on Apr 7 eventually closing at $3.76 on the same day. In fact, shares of this CA-based outpatient diagnostic imaging services provider have been gaining momentum since it reported strong fourth-quarter and full-year 2013 results on Mar 3.

Year to date, the company's shares recorded a healthy return of 132.1%. The company's long-term estimated EPS growth rate is pegged at 10%.

Strong First-Quarter Performance

RadNet posted stronger-than-expected fourth-quarter results. The company's adjusted earnings per share (excluding severance costs, loss of disposal and amortization of deferred financing fees and discount on issuance of debt) were 9 cents in the quarter, which beat the Zacks Consensus Estimate by 8 cents and increased significantly from the prior-year quarter's loss of 11 cents per share.

RadNet's fourth-quarter revenues increased 11.9% year over year to $178.3 million, beating the Zacks Consensus Estimate by 3.12%. For full-year 2013, the company's revenues were $703 million, up 8.6% from 2012.

In the fourth quarter, RadNet performed an increased number of total procedures which came in at 1,137,825, up 12.2% from the prior-year quarter; with major hikes in procedures for MRIs and routine imaging exams.

For the fourth quarter of 2013, Radnet's MRI volume increased 16.8% while CT volume increased 5% over the prior-year quarter. The company's overall volume, including x-ray, ultrasound, mammography and other exams, increased 12.2% in the quarter and 9.3% in 2013.

Sequentially, RadNet experienced significant improvement in its operating performance, primarily driven by increased revenues and procedures as well as solid expense management.

Other Stocks to Consider

RadNet currently carries a Zacks Rank #4 (Sell). Some stocks that warrant a look within the broader medical sector are Alkermes plc ALKS, Alexion Pharmaceuticals, Inc. ALXN and ANI Pharmaceuticals, Inc. ANIP. All these stocks carry a Zacks Rank #1 (Strong Buy).