Shares of medical device maker Mindray Medical International Ltd. jumped Tuesday after the company reported a 4 percent boost in first-quarter profit and reaffirmed its growth outlook.
The stock rose $2.73, or 9.9 percent, to $30.27 in afternoon trading. Shares have traded between $25 and $35.95 over the last 52 weeks.
On Monday, the China-based company said its profit rose 4 percent during the first quarter to $37.7 million, or 32 cents per share, from $36.2 million, or 31 cents per share, during the same period a year prior. Revenue jumped 24 percent to $180.9 million from $145.8 million.
Excluding charges, the company earned 36 cents per share. Analysts polled by FactSet expected profit of 33 cents per share on $167.9 million in revenue.
International revenue rose 30 percent to $108.5 million while revenue in China rose 17 percent to $72.5 million. The company makes a range of diagnostic and medical imaging devices, including patient monitoring systems and analysis systems.
Looking ahead, the company expects full-year profit, excluding charges, to grow by more than 10 percent while revenue grows by more than 16 percent.
Oppenheimer analyst Ingrid Yin upgraded the stock to "Outperform" from "Perform", citing the company's outlook for growth.
"Mindray's China strategy is becoming effective faster than we thought," she said, in a note to investors, calling the growth outlook conservative.
She expects the company to also benefit from a recovery in the U.S. market and high demand in emerging markets.