The company is in the middle of a $710 million divestiture of its surgical and infectious disease prevention business to Owens & Minor (NYSE:OMI), so it reported financial results for both on-going and discontinued operations.
The Alpharetta, Ga.-based company posted profits of $32.8 million, or 70¢ per share, on total sales of $428 million for the three months ended Dec 31.
Adjusted to exclude one-time items, earnings per share were 73¢, ahead of consensus on The Street, where analysts were looking for sales of $416.2 million.
In Q4, the business it’s selling to Owens & Minor brought in $28.4 million in profits, or 61¢ per share, on $261.8 million in sales. Meanwhile, its medical device business posted $4.4 million in net income, or 9¢ per share, on $166.3 million in revenue. Adjusted EPS for Halyard’s discontinued operations were 73¢ apiece, compared to 1¢ apiece for its on-going operations.
For the full year, Halyard posted $1.68 billion in total sales, topping analyst estimates of $1.61 billion. The company reported $79.3 million in net income for 2017, with adjusted EPS of $2.35 apiece.
Its surgical & infectious disease prevention biz brought in $111.4 million, or $2.38 per share, of net income on $1.01 billion in sales. Adjusted EPS for Halyard’s discontinued operations were $2.61 apiece. The company’s medical device business unit posted a net loss of -$32.1 million, or -69¢ apiece, on sales of $611.6 million. Adjusted EPS were -25¢.
“2017 was a strong year and I’m proud of our team’s execution and accomplishments. Momentum in our medical device business continued as we accelerated our growth, increased the number of product launches and delivered earnings ahead of plan,” CEO Joe Woody said in prepared remarks.
“With the divestiture of S&IP on track to close in early second quarter and our playbook for growth, we are well positioned to succeed in 2018. I’m confident about our outlook, and through strategic investments in product innovation, commercial excellence, and M&A we expect to be well positioned to capitalize on the opportunities ahead.”
HYH shares were trading at $48.00 apiece today in morning activity, down -0.7%.