Talecris Biotherapeutics Holdings Corp. - Momentum

Talecris Biotherapeutics Holdings Corp.

 (TLCR) recently hit a new all-time high after spending the last six months advancing along a very steady trend line. With an average earnings surprise of 9% over the last four quarters and estimates on the upswing, this Zacks #1 rank stock provides the right remedy for momentum. 

Company Description

Telacris Bio therapeutics Holding Corp. is a biopharmaceutical company that specializes in the development of plasma-derived protein therapies worldwide with a market cap of $3.56 billion.

Our last major update on TLCR's business came in late February when the company reported strong Q4 results that included sharp gains from last year.

Fourth-Quarter Results

Revenue for the period was up 5% from last year to $411 million. Net looked even better, spiking to $17 million from $1.4 million last year.

The strong results were driven by solid gains in Gamunex-C/Gamunex IGIV revenue, which was up 10% from last year to $21 million.

Margin expansion also helped the cause, with gross margin climbing to 41.2% from 39.2% last year.

Financial Profile

The company has also been very focused on strengthening its balance sheet, with cash and equivalents jumping $133 million to $198 million against long-term debt and capital lease obligations of $605 million.

Estimates

We saw some movement in estimates off the good quarter, with the current year up 7 cents in the last two months to $1.81 while the next-year estimate gained 8 cents in the same time to $1.93, a solid 7% growth projection.

Valuation

But in spite of the solid gains, the valuation picture still looks solid, with a forward P/E of 15.5X, a decent discount to its peer average of 17X.

6-Month Chart

On the chart, shares recently surged into a new all-time high after trending higher for most of the last six months. Look for support from the trend line on any weakness, take a look below.

Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the Zacks Momentum Trader Service.
 
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