Brean Capital Sees Analogic Corporation Staying on Course in 2Q15

In a report published Wednesday, Brean Capital analyst Jason Wittes reiterated a Hold rating on

. In the report, Brean Capital noted, "ALOG reported diluted non-GAAP 2Q15 EPS of $1.08, materially exceeding both our estimate and the consensus estimate of $0.71 and $0.88 respectively. As expected, revenues contracted from the prior year period by 5.4%, to $133.9MM, but demonstrated wide ranging disparity in comparison to both our estimate and consensus revenues of $131.2MM and $137.6MM respectively. Operating margins of 9.2% came in below our 9.5% expectation, but the tax rate was significantly lower driving most of the EPS upside. For the year, the tax rate should run lower than expected driving up our EPS estimate to $3.99 from $3.84." Analogic Corporation closed on Tuesday at $85.42.