The Peabody, Mass.-based company posted profits of $7.5 million, or 59¢ per share, on sales of $130.3 million for the 3 months ended Jan. 31, with the bottom-line swinging from the red while sales grew 3.5% compared with the same period last year.
After adjusting to exclude 1-time items, earnings per share were 99¢, well above the 78¢ consensus on Wall Street, where analysts were looking for revenue of $130.4 million.
“We are pleased with the progress made in the 2nd quarter driven by strong growth in security on demand for international high-speed threat detection systems. The strength in security was offset by lower medical imaging and ultrasound revenues,” CEO Fred Parks said in a press release.
Analogic released updated guidance for the rest of its fiscal year, expecting revenue to be flat compared with the previous year with non-GAAP earnings per share of between $3 and $3.45.
“For the remainder of fiscal 2017 we will execute our plans to improve profitability in Ultrasound while maintaining our performance levels in medical imaging and security. Sequentially, revenue in the second half of the year will be roughly the same as the first half. Given the hard work ahead of us, we are targeting to maintain flat revenues this year with double-digit non-GAAP operating margins. We expect to emerge from fiscal 2017 with a business structure positioned for long-term growth and improved profitability. In fiscal 2019 we are targeting mid-single digit revenue growth with non-GAAP operating margins expansion of approximately 1 point per year from fiscal 2017 levels,” CEO Parks said in a prepared statement.
Analogic shares have slumped today after the earnings were posted, down 9.8% to trade at $75.32 as of 2:41 p.m. EST.