Shares in Natus Medical (Nasdaq: BABY) fell today after the newborn-focused medical device maker posted first quarter earnings that saw profits turn to losses, despite topping Wall Street expectations for sales and earnings per share.
The Pleasanton, Calif.-based company posted losses of approximately $3.2 million, or 10¢ per share, on sales of $128.6 million for the three months ended March 31, seeing a massive swing from profits on the bottom-line while sales grew 3.2% compared with the same period during the previous year.
After adjusting for one-time items, earnings per share were 24¢, just in line with the 24¢ consensus on Wall Street, where analysts were expecting to see sales of approximately $126 million, which the company beat.
“I am very pleased with our first quarter revenue and non-GAAP earnings per share that came in at the high end of our guidance. We achieved organic revenue growth of 3% during the quarter, driven by revenue strength in our Otometrics business. Our neuro and newborn care business units reported solid revenue and profitability during the quarter as well. As planned, we invested during the first quarter in Otoscan, our breakthrough 3D digital ear scanning solution. Otoscan was introduced last week at the American Academy of Audiology, the world’s largest gathering of audiologists. We will continue this investment throughout 2018 and anticipate Otoscan revenues in the second half of the year,” prez & CEO Jim Hawkins said in a prepared statement.
Natus also provided updates on guidance for the full year and coming second quarter. The company said that in the second quarter, it expects to see sales between $129 million and $131 million and non-GAAP EPS of between 25¢ and 27¢.
The company reaffirmed its sales guidance for the full year, expecting to see between $535 million and $540 million in sales and non-GAAP earnings per share of between $1.60 and $1.65.
Shares in Natus have dropped 4.7% so far today, at $34.20 as of 1:43 p.m. EDT.