Optos saw shares rise strongly on Monday morning after saying that both turnover and operating profit for the year ending September 30th was ahead of market expectations.
The ophthalmology equipment maker reported that, following strong sales in the last quarter, "revenues are expected to exceed $190m", ahead of consenus expectations of $183m, with operating profit expected to be "slightly above market consensus" of $22.3m.
Manufacture of its latest product range, the Daytona, has reached current planned capacity in the last quarter, allowing the full year (ending 2012) order backlog to be fully cleared and resulting in an installed base of 329 devices at the end of September 2012.
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As stated in its third-quarter interim management statement, the company expects "gross margins to improve during full year 2013 as Daytona volumes increase".
Chief Executive Officer Roy Davis commented: "I am delighted with the company's achievements this year and in particular, the manufacturing scale-up and market roll-out of Daytona.
"The reaction to this instrument has been very positive and I am excited by the opportunities it brings to the business. Our near-term focus is to drive sales of Daytona in all our key markets and to continue our success with the 200Tx instrument in the ophthalmology market."
Broker reaction
Broker reaction to the update has been equally positive. Numis has reiterated its "buy" rating and 300p share price target, while Jefferies, which also has a "buy" rating, has raised its price target to 280p from 270p.
Meanwhile, Panmure Gordon has upgraded its rating from 'hold' to 'buy', saying that Optos "should be a core holding to investors looking to have healthcare in their portfolio". The broker raised its target price for the shares from 230p to 320p.
The shares, by 10:53, were up 6.29% at 209.25p.
CM
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