MWI Veterinary Supply, Inc. - Aggressive Growth

MWI Veterinary Supply, Inc. (MWIV) surged to an all-time high following its latest earnings surprise. Bullish guidance and estimate revisions have shares trading at value relative to its industry.

Company Description

MWI Veterinary Supply distributes animal health products in the U.S. and U.K. Items range from pharmaceuticals and vaccines to diagnostic tools. The company serves both the production and companion animal markets.

Revenue Surges 40%

On Jul 29 MWI Veterinary Supply reported fiscal third-quarter revenue of nearly $348 million, up 40% since the same period last year. While 23% was from an acquisition, the other 17% was organic growth.

Net income came in at $9.1 million, a 38% jump since last year. Earnings broke down to 74 cents per share, which was 15 cents ahead of the Zacks Consensus Estimate. MWI Veterinary Supply has topped expectations in each of the past 7 quarters and only missed twice in the last 5 years.

Bullish Guidance

Analysts quickly raised their full-year estimates after MWI Veterinary Supply guided higher, above the consensus. All 5 analysts supplying estimate for this year raised their forecast, which average $2.59, up 15 cents.

Next year's Zacks Consensus Estimate is up 11 cents, to $2.85. Given the $2.02 earned last year, the growth rates are coming in at 28% this year and another 10% next year.

Valuations

Shares of MWIV are not much a deal at first glance, with a PEG of 1.3 and a forward P/E at 10 times. However, both of those measures are coming in below the industry average.

MWI Veterinary Supply's industry itself is rank in the middle of the pack, but the company its the top rated out of its 30 peers.

The Chart

The stock is now trading at its all-time highs following the earnings news and subsequent estimate revisions. Momentum has made a clear shift and could carry MWIV even higher.

MWI VET SUPPLY (MWIV): Free Stock Analysis Report
 
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