Analogic Shares Plummet On Surprising Preliminary Q3 Results
Revenue for Analogic's third quarter is expected to be seven percent below what Wall Street was looking for and 1.93 percent below the same quarter a year ago.
CEO Jim Green commented in the press release that delays in airport tenders are a key reason for lower than expected sales; he expects this to be a difficulty through the end of the year, which also hurts guidance. Another key reason for the drop in sales is the exit of Analogic’s legacy patient monitoring business.
Earnings are expected to miss the analyst consensus by almost 14 percent at $0.94 per share.
Looking forward, Analogic sees full year 2014 revenue falling by mid-single digits (three to seven percent), compared to full year 2013. Non-GAAP margins are expected to be in the double digits.
Green also commented, “We have taken aggressive moves to control costs to offset lower external engineering funding. Finally, we will no longer have the difficult year-over-year comparison related to the exit from the patient monitoring and non-strategic legacy OEM probes. While we face near-term market challenges, we continue to execute on our strategy and remain optimistic about our long-term growth prospects."
Analogic is expected to release full third quarter results on June 5.
Shares of Analogic are currently trading down 11.27 percent at $68.25.
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