ADRs in Focus: Mindray Medical ADRs climb on 1Q earns

Mindray said its quarterly profit surged to $25.6 million, or 23 cents per ADR, from $15.8 million, or 14 cents per ADR, in the same quarter last year.

Stripping out one-time items, the company said its adjusted profit totaled $28.4 million, or 25 cents per ADR.

Revenue increased 63 percent to $89.3 million from $54.7 million a year ago.

Analysts polled by Thomson Financial expected more modest earnings of 19 cents per share on revenue of $84.4 million.

Mindray also raised its full-year outlook to $1.16 to $1.18 per share, a penny higher on each end from its earlier estimate. Analysts project 2008 earnings of $1.05 per share. The company also forecast 2008 revenue of $560 million to $580 million, well above the Street's view of $454.9 million.

The company added it expects its acquisition of U.S. medical device company Datascope Corp., which it announced in March, to complete in mid May.

ADRs of Mindray jumped $4.15, or 11.7 percent, to finish at $39.55.

In a note to investors, Citi Investment Research analyst Hoki Luk reiterated a "Buy" rating on Mindray, calling the results "robust."

Luk was upbeat on the company's acquisition of Datascope, especially as the company pointed out the acquisition would have little impact on full-year earnings. Many had expected the deal to be dilutive and result in lower earnings per ADR, Luk said.

The analyst assigned a target price of $45, meaning he expects the stock to gain 27 percent over its closing price Wednesday.

The broader Asian ADR market climbed Thursday. The Bank of New York Asia ADR Index rose 0.27 points to 163.90. ADRs, or American Depositary Receipts, are securities that allow overseas companies to trade on U.S. markets.

The Bank of New York Composite ADR index gained 1.45 points to 183.73.