Should I Do It? American Medical's Bill of Health

American Medical(AMMD Quote) preannounced 20% second-quarter revenue growth to $78.8 million on Monday evening, exceeding the consensus analyst estimate by 2%. The company makes a wide range of synthetic medical products that regulate pelvic function for both men and women.

About 60% of its revenue comes from surgical implants that regulate erectile dysfunction and urinary incontinence for men. According to American Medical, some 94 million men worldwide, including 52 million American and European men, are afflicted with these problems.

After the upside revenue surprise, the stock closed 3% higher Tuesday to $17.67. That's up some 19% from its June 20 lows, but also 15% below where American Medical was trading before June 5, when it announced its $678 million acquisition of medical-laser maker Laserscope(LSCP Quote).

With that in mind, I'm here to answer readers' questions. Should I do it? Can shares of American Medical continue to rebound, or has the stock run too far too fast?

The company said that revenue growth was strong across the board. Sales of men's health products were up 12.5% from the previous year, while women's health (42% of revenue) grew 33%. Among its products targeted toward women, American Medical makes implantable products to treat urinary incontinence, which the company says afflicts some 51 million women globally, including 17 million in the U.S. The company also treats prolapse, a bulging sensation that affects 14 million women in this country, as well as excessive menstrual bleeding, which American Medical says occurs for about 30% of the global female population.

Management did not offer specific second-quarter earnings guidance Monday, though I believe there's upside potential to the 17-cent analyst estimate, given the preliminary revenue results. American Medical is also a market leader in most of its primary markets, given the company's solid pricing power. That's an important quality for a company operating in any industry.