SAN FRANCISCO (Thomson Financial) - Shares of Given Imaging Ltd. rose
Thursday after posting adjusted fourth-quarter earnings that beat Wall Street's
estimate by a penny. The company also issued a 2008 outlook that was better than
analysts' estimate.
Given Imaging shares rose 11% to $16.01.
The company reported adjusted earnings of $2.68 million, or 9 cents a share,
versus $2.92 million, or 9 cents a share, in the year-ago quarter.
Net income for the quarter ended Dec. 31 was $12.8 million, or 41 cents a
share, compared with $1.5 million, or 5 cents a share, a year earlier.
Revenue for the same period rose to $34.2 million from $27.5 million in the
prior-year period.
Analysts polled by Thomson Financial, on average, expected earnings of 8
cents a share and revenue of $31 million for the quarter.
The Yoqneam, Israel-based provider of medical diagnostic products expects
adjusted earnings per share in 2008 of 44 cents to 52 cents on revenue of $130
million to $136 million.
Wall Street, on average, sees 2008 earnings of 37 cents a share and revenue
of $134 million.
Given stock tumbled Wednesday after the company said it received a not
substantially equivalent letter from the Food and Drug Administration regarding
its COLON PillCam endoscope.
But prior to the results announcement analysts said the letter should not be
regarded as too considerable a setback and that inroads in overseas markets
should benefit the company.
"Shares seem to have reached a bottom, in our opinion, and we would look to
become more positive on [Given] with better evidence of traction in Japan and
Europe and/or clearly stated goals on operating margin improvement. Long term
investors should take note," Oppenheimer Research Analyst Amit Hazan wrote in a
note to clients Tuesday.
Brigid Gaffikin
bg/vj
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