Peabody, Mass.-based Analogic said it now expects to post earnings of 62¢ per share, or 94¢ when adjusted to exclude 1-time items, on sales of $124 million for its fiscal 3rd quarter ended April 30. Analysts on The Street were looking for adjusted EPS of 1.09.
Full-year sales are slated to decline compared with fiscal 2013, as a slump in airport security orders continues, president & CEO Jim Green said in prepared remarks.
"While we expect that continued challenging market conditions will negatively affect our top line for the 3rd quarter and full fiscal year, we still expect to deliver solid operating margins and positive cash flows for both periods," Green said. "As a result of the challenging market conditions and given the difficult year-over-year comparisons due to the exit from the legacy patient monitoring business and the reduction in funded engineering, we anticipate that FY14 net revenue will decline mid-single digits from FY13. Despite the challenging top line, due to our diligent focus on profitability, we expect to deliver double-digit non-GAAP operating margins for the year."
It’s the 2nd time since March that Analogic has cut its outlook on fiscal 2014, which ends July 31. Announcing fiscal 2nd-quarter results, Green said Analogic expected flat sales for the rest of the fiscal year, down from the upper-single-digit growth predicted in December 2013.
Analogic is slated to release its fiscal 3rd-quarter results June 5, according to the release.
ALOG shares were down 11.6% to $68 apiece as of about 12:45 p.m. today, its lowest mark since August 2012.