Net Income Jumps 31%

While the latest quarterly report was back in late October, it was a nice one. Revenue rose 17%, to $91 million on a 16% increase in patients. Same-market area patient revenue (similar to same-store sales) was up 15%.

Net income was up came in at $6.1 million, up from $4.6 million, and broke down to 37 cents per share. EPS topped the Zacks Consensus Estimate by 3 cents for back-to-back surprises.

We saw a rush of upward estimate revisions on the earnings news, but what I particularly like is the recent moves. In the past month we have seen 5 analysts raise estimates for 2010, but they were minor changes and left the consensus unchanged at $1.43.

However, the 15 revisions for 2011 moved the average estimate to $1.78, up 6 cents. I know that does not sound like much, but when analysts are unanimously raising their outlook in between earnings reports that is a very bullish signal.

Given the $1.14 earned in 2009, the expected growth rates are 26% and 24%, respectively.

At 19 times 2011 estimates, IPCM does not exactly scream value. But when you factor in the growth prospects, you have a PEG of 1.0, which shows a fair price. Also both of those figures are slightly better than the peer group is averaging.

Shares of IPCM have only been trading for a few years, but below you can see that fantastic long-term earnings trend. Each colored line is a year's consensus estimates. Take a look how the numbers climb consistently and the drastic moves we are seeing recently.