Analysts were expecting Inverness Medical Innovations Inc. (IMA) [Chart - News - Analysis] to report earnings of $0.61 for last quarter, but IMA beat expectations with actual earnings of $0.74---13 cents above the consensus estimate.

If you compare last quarter's earnings to the $0.46 the company made per share during the same quarter a year ago, you can see that IMA’s earnings are up this year.

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Also, if you compare IMA's 18.90% projected earnings-per-share (EPS) growth rate for the next five years with the projected EPS growth rate of 14.19% for the Medical Laboratories & Research industry as a whole during that same time frame, you can see that analysts expect IMA to outperform the industry in the future---which is a good sign for the stock.

Drilling down a little deeper into the Medical Laboratories & Research industry, you can see how analysts believe IMA will stack up against some of the other stocks in the industry, like Bio-Reference Laboratories Inc. (BRLI) [Chart - News - Analysis] and eResearchTechnology, Inc. (ERES) [Chart - News - Analysis], in the future. Analysts believe BRLI's earnings are going to grow at a rate of 18.25% while ERES's earnings are going to grow at a rate of 20.00%.

Earnings season can be a volatile time in the stock market. Check out these videos and articles to be better prepared to take advantage of the large price moves that tend to accompany earnings announcements.

- Earnings Season is Here - Find Out How to Trade It

- Using Options to Trade Earnings

- Understanding Stock Analyst Research and Recommendations

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Implied volatility is relatively high in these options, which means the premiums are also very high. Higher implied volatility can make it difficult for option buyers to make profits unless the stock makes a very large move.

Cardionet, Inc (BEAT) competes in the medical devices industry with eResearch Technology, Inc. (ERES) and Metronic, Inc (MDT).

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Although there are no magic trading bullets to deal with short term volatility there are some things you can do as an options trader to take additional control over your risk. Option spreads are one way to take more control. A spread combines more than one option contract or an option and a stock into a single trade. Some spreads are directional (bullish or bearish) and others are neutral towards market direction but will profit if volatility falls (or rises.)

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