TSC Ratings' Updates: Microsemi

Cantel reported significant EPS improvement in the most recent quarter compared with the same quarter last year. During the past fiscal year, the company increased its bottom line by earning 53 cents versus 51 cents in the prior year. This year, the market expects further improvement in earnings to 78 cents.

We've upgraded financial services company Life Partners Holdings(LPHI Quote) from hold to buy, driven by its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income.

Revenue rose by 44.3% since the same quarter last year, boosting EPS. Life Partners' debt-to-equity ratio is very low at 0.02 and is currently below that of the industry average, implying very successful management of debt levels. The company also maintains a quick ratio of 4.4, which clearly demonstrates its ability to cover short-term cash needs. Net income growth of 39.6% significantly exceeded that of the S&P 500 and the diversified financial services industry.

EPS rose by 38.6% in the most recent quarter compared with the same quarter a year ago. During the past fiscal year, the company increased its bottom line by earning $1.57 vs. 28 cents in the prior year, and this year, the market expects an improvement in earnings to $2.27. Shares are up 26.5% on the year, outperforming the S&P 500, and although almost any stock can fall in a broad market decline, this stock should continue to move higher.