MWI Veterinary Supply (MWIV) reported an EPS of 71 cents in the fourth quarter of fiscal 2010, up 34% from 53 cents in the year-ago period and surpassing the Zacks Consensus Estimate of 61 cents. For fiscal 2010, the company reported an EPS of $2.70, well above the Zacks Consensus Estimate of $2.60 and the previous year's $2.02. However, the acquisition in February 2010 of U.K. based Centaur Services Limited, an animal health products supplier, impacts the current quarter.

MWI Veterinary Supply's revenues of $358.9 million for the quarter surpassed the Zacks Consensus Estimate of $334 million and 45% higher than the corresponding period last year. While 19.2% of the growth is attributable to business operations of the company in the U.S., 25.8% came from the acquisition of Centaur Services. For fiscal 2010, revenues came in at $1.23 billion, 30.6% higher than 2009 and marginally above the Zacks Consensus Estimate of $1.20 billion.                                                           

MWIV's operating income increased 29.6% year over year to $13.8 million although operating margin declined 39 bps to 4.23%. Although selling, general and administrative (SG&A) expenses increased 29.4% to $30.3 million primarily due to the acquisition of Centaur, SG&A expenses as a percentage of total revenues improved to 8.5% during the reported quarter compared with 9.5% in the year-ago period. This is because Centaur's SG&A expense margin is lower than MWI which has brought down the overall SG&A expense margin. In addition, the company witnessed an improvement in debt collection.