Gen-Probe's EPS and Sales Beat - Analyst Blog
May 02 2012 - 8:15AM
Zacks
Gen-Probe
Inc. (GPRO), a leading diagnostic devices company,
reported its first quarter fiscal 2012 adjusted (excluding one-time
expenses) earnings of 55 cents a share, beating both the Zacks
Consensus Estimate and the year-ego earnings of 51 cents and 54
cents, respectively. In the reported quarter, profit slipped 3.5%
to $22.5 million (or 49 cents per share).
Gen-Probe recently
announced that women’s healthcare major, Hologic
Inc. (HOLX) will takeover the company for $3,700 million
(or $82.75 a share).
Revenue
Revenues rose 7% year
over year to $153.4 million beating the Zacks Consensus Estimate of
$151 million. Product sales increased 9% to $150.1 million as
healthy sales across Blood Screening and Clinical Diagnostics
franchises was partially offset by lower revenues from the Research
Products and Services and Collaborative Research
businesses.
Revenues from Clinical
Diagnostics segment grew 7% (up 8% in constant currency) year over
year to $94.9 million, led by strong sales of APTIMA Combo 2,
APTIMA HPV and APTIMA Trichomonas assays. Foreign exchange swings
negated revenues by approximately $0.5 million.
Blood Screening sales
rose 12% (up 13% in constant currency) to $52.5 million, driven by
higher shipping of TIGRIS devices to its partner
Novartis (NVS). Foreign exchange swings reduced
sales by roughly $0.1 million.
Research Products and
Services sales dropped 13% to $2.7 million in the quarter. Revenues
from Collaborative Research plunged 61% to $1.4 million, hurt by
lower funding from Novartis for the development of the PANTHER
system for blood screening.
Gen-Probe expects to
launch the PANTHER system in international blood screening markets
in 2012. Royalty and license revenues increased 36% to $1.9
million.
Margins
Product sales gross
margin was 65.1% versus 69.6% in the year-ago quarter, resulting
from unfavorable product mix. Operating margin decreased to 20.6%
from 24.2% due to higher sales and marketing expenses along with
poor product mix.
Marketing and sales
expenses climbed 15% to $19 million due to expansion in the
operations of women’s healthcare. General and administrative
expenses rose 4% to $19 million as a result of continuing
litigation.Research and development expenses dipped 1% year over
year to $28.6 million.
Balance
Sheet
Gen-Probe exited first
quarter 2012 with cash and cash equivalents and marketable
securities of $401.3 million (down 18.3%) and short-term debt of
$248 million, flat year over year. The company produced $31.7
million in cash flows from operations during the quarter and
invested $9.3 million in capital expenditure, resulting in a free
cash flow of $22.4 million.
Guidance
Gen-Probe expects
somewhat higher sequential revenue for the second quarter 2012 and
adjusted earnings in the band of 55 cents and 58 cents a share. On
a reported basis, the company forecasts earnings to remain in the
range of 51 cents to 54 cents per share. Fiscal earnings and
revenues forecast remain unchanged.
Currently, we have a
long-term Neutral recommendation on Gen-Probe, which is in tandem
with a short-term Zacks #3 Rank (Hold).
GEN-PROBE INC (GPRO): Free Stock Analysis Report
HOLOGIC INC (HOLX): Free Stock Analysis Report
NOVARTIS AG-ADR (NVS): Free Stock Analysis Report
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