Mindray Medical International Misses Q4 Estimates

Mindray Medical International Ltd (ADR)

announced Monday its selected unaudited financial results for the fourth quarter ended December 31, 2014. Revenue came in at $399.0 million, below estimates of $407.07 million and above the $368.4 million reported in the year ago quarter. Non-GAAP net income was $59.7 million, a 19.1 percent decline from the $73.9 million reported in the prior year period. Non-GAAP diluted EPS was $0.50, below estimates of $0.52 and the $0.62 reported in the year ago period. Gross profit was $220.4 million, a 7.1 percent increase from the $205.9 million in the fourth quarter of 2013. Net income was $52.0 million, a 30.9 percent decline from the $75.2 million reported in the year-ago period. Diluted EPS was $0.44, a decline of 29.9 percent from the $0.63 reported in the fourth quarter of 2013. For the full year of 2014, the company reported revenue of $1.322 billion, an 8 percent increase from 2013 and nearly in line with consensus. For 2014, non-GAAP EPS of $1.93 was reported, above estimates of $1.82 and below the $2.20 reported for 2013. Co-CEO and Chief Strategic Officer Cheng Minghe said, "In 2014, Mindray continued to focus on innovation and strengthening its core competencies in the face of a tough operating environment across major markets. Western Europe remained a bright spot and its growth reflected the success of our investments over the last few years. The IVD segment performed well, largely driven by reagents sales increase. Longer term, we remain upbeat about our IVD business, based on the ramp up of our higher-end products and our ability to offer total solutions to customers." For 2015, the company anticipated its full year net revenues to grow by a mid-single digit percentage over its full year 2014 net revenues. The company also expected its full year 2015 non-GAAP net income to decrease by a high-single digit percentage over its full year 2014 non-GAAP net income. The guidance for 2015 excluded the tax benefits related to the nationwide key software enterprise status and assumes a corporate income tax rate of 15 percent applicable to the Shenzhen subsidiary. Mindray Medical International Ltd (ADR) traded at $28.02 in the after hours session, down 4.76 percent.