Natus Medical (NSDQ:NTUS) recently reported third-quarter numbers that missed expectations on earnings and sales.
The Pleasanton, Calif.-based company continued in the black for the three months ended Sept. 30, posting profits of $8.5 million, or 25¢ per share, on sales of $123.5 million, a -5.4% top-line slip. Adjusted to exclude one-time items, earnings per share were 36¢, 2¢ behind the consensus on Wall Street, where analysts were looking for revenues of $124.75 million.
“Our third-quarter results represent continued improvement in our business,” said company president & CEO Jonathan Kennedy in a news release. “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 and 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. 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 lowered its outlook on the rest of the year, saying it now expects adjusted EPS of $1.23 to $1.29, compared with $1.19 to $1.32 previously. Sales are now expected to be between $492.0 million and $496.0 million, compared with prior guidance of $492.0 million and $500 million.
Fourth-quarter adjusted EPS are pegged at 44¢ to 50¢ on sales of $128.0 million to $132.0 million.