New York based Air Methods Corporation (AIRM), a leading provider of emergency medical air transportation announced extremely impressive fourth quarter earnings results that gave its stock help. The company said its fourth quarter profit quadrupled from the previous year based on two key factors: Revenue from a recent acquisition and low tax expenses.
Stock investing spiked as buyers drove the stock up over 2% passed $40 during the day, following the announcement. Trading portfolio additions were driven by earnings of $4.8 million, or 38 cents per share, compared with $1.2 million, or 10 cents per share, during the fiscal 2006 fourth quarter. This is a pretty significant jump and stock trading definitely increased in volatility following the announcement.
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Investors also jumped in with aggressive investment strategy maneuvers following the 5 cents per share defeat of the 33 cents per share analyst estimates for earnings. A 58% revenue climb was a huge factor in the profit increase, as well as the tax benefits. The company’s revenue rose from $77.5 million in 2006, to $122.6 million in 2007. Patient transports also spiked by 28%.
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Air Methods also gave some data on its full year of 2007. The company’s annual earnings were $27.5 million, or $2.20 per share. Earnings in 2006 were $17.2 million, or $1.40 per share. Revenues moved from $319.5 million to $396.3 million. Lead by the strong fourth quarter, the company was please with its overall revenue and earnings growth during 2007.
After hours stock investing propelled the stock past $41, making its total gains near 5% following the earnings report. On year target estimates put the stock at a remarkable $60.67. The company’s performance, combined with estimates, suggests covered call strategies and covered call investing may take a back seat to long-term stock investing.
Air Methods stock has seen a wide range in its price during the last 52 weeks as it has seen a low of $23.16 and a high of $59.50. Analysts seem to think the company’s next move is likely back toward the high, given one year estimates.
Given its current price above $41, if the stock does reach estimates, current traders could profit a nice $20 per share gain. This would be a very impressive gain over the course of a year. Given poor economic conditions affecting other consumer-driven stocks, Air Methods seems like a likely option for investors wanting to add to their trading portfolio.
Sometimes overwhelming earnings reports can be a bit misleading if they’re driven by unique accounting situations or extraordinary items or adjustments. Given that Air Methods earnings growth is related largely to strong revenue growth, this seems to suggest a greater likelihood of substantial business foundation driving the company’s success. This would be good news for investors hoping for continued upward moves by the company and its stock.
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[tags] New York, 2006, 2007, AIRM, Air Methods Corp., covered call investing, covered call strategies, investing in stock options, investment strategy, poweroptions, stock help, stock investing, stock market help, stock market investment strategies, stock options, stock trading [/tags]