Despite hefty top-line contributions expected from a recent acquisition, Beckman Coulter Inc. (NYSE:BEC) is scaling back its fiscal guidance for the rest of the year while it works to resolve a recall of its test for heart attacks and other cardiac events.
The Orange County, Cailf.-based company confirmed in February that clients using its Access and UniCel DxI immunoassay platforms were receiving significantly higher numbers of false positive test results for a blood protein that usually occurs after myocardial infarctions. The Food & Drug Administration instituted a Class II recall, indicating moderate risk of long-term complications to patients, but gave Beckman customers until Aug. 1 to switch an alternative troponin assay.
Beckman estimated that the recall — combined with changes in currency exchange rates — could trim the company’s 2010 earnings by $3.5 million to $7.1 million, or between 5 cents to 10 cents per share. The company also revised its previous revenue forecast for the year, cutting predicted revenues by $50 million to a new range between $3.75 billion to $3.85 billion.
Included in the new forecasts are up to $500 million in additional revenues this year resulting from Beckman’s 2009 acquisition of Olympus Diagnostics Corp. as part of the company’s efforts to boost its clinical chemical analysis business. Olympus-related revenues raised Beckman revenues by about $115.7 million during the three months ended March 31, the company reported, with overall revenues rising 27 percent from year-ago levels to $881.1 million.
But even with the Olympian-sized assist, Beckman missed Wall Street estimates for the quarter by wide margins. Revenues were nearly $56 million below consensus analyst opinion for the quarter while operating income for the quarter were 24 cents per share — or about $17 million — under the $1.10 per share adjusted gain analysts had been expecting.
Beckman reported adjusted earnings of $66 million, or 71 cents per share, on $691 million in revenues during the same quarter last year.