Natus Medical (NSDQ:NTUS) swung from red to black with its third-quarter results and raised its earnings outlook for the rest of the year, sending its share price up on Wall Street.

The Pleasanton, Calif.-based company posted profits of $8.5 million, or 25¢ per share, on sales of $123.5 million for the three months ended Sept. 30, compared with losses of -$5.6 million, or -17¢ per share, during Q3 2018. Sales decline -5.5% compared with the same period last year.

Adjusted to exclude one-items, earnings per share were 36¢, a penny below the consensus on The Street.

“Our third-quarter results represent continued improvement in our business. Our performance in the quarter drove significant cash flow from operations of $23.9 million. Revenue from our neuro end market grew 8% adjusted for divestitures for the second consecutive quarter. Our newborn care and hearing & balance markets were down year-over-year, but showed growth in phototherapy, vision screening and hearing fitting devices. Overall, we achieved revenue growth of 2%, adjusted for divestitures and discontinued products,” president & CEO Jonathan Kennedy said in prepared remarks. “During the quarter, we continued to execute our strategic plan of focusing our efforts in the central nervous systems and sensory markets and believe we have achieved significant improvements in our operational efficiency.”

Natus narrowed its guidance for the rest of the year, saying it now expects to log adjusted EPS of $1.23 to $1.29, compared with $1.19 to $1.32 previously, on sales of $492.0 million to $496.0 million, compared with prior guidance of between $492.0 million and $500.0 million.

Fourth-quarter adjusted EPS are pegged at 44¢ to 50¢ on sales of between $128.0 million and $132.0 million, the company said.

NTUS shares are up some 3.2% to $33.76 since its Oct. 24 earnings announcement.