The Warsaw, Ind.-based medical device company posted profits of $1.2 million, or 3¢ per share, on sales of $101.9 million for the 3 months ended June 29, for a top-line slip of 0.4% and a bottom-line plunge of 28.1% compared with the 2nd quarter of 2012.
Adjusted to exclude 1-time items, earnings per share were 9¢, 3¢ shy of consensus expectations on Wall Street.
"We are pleased with our second quarter results, which reflect growth in the OEM solutions segment and a stabilization of the integration challenges in our Symmetry Surgical segment. While we expect the Symmetry Surgical segment to be pressured for the remainder of the year, we have made measurable progress addressing the integration issues as evidenced by the slight sequential growth. Moving forward our team will continue to focus more time on building customer relationships and our Symmetry Surgical brand, leading to a gradual improvement in year over year results. In OEM solutions, our results reflect the stable orthopedic procedure environment and a greater than expected impact to implant revenue from the timing of orders and inventory adjustments from certain customers," president & CEO Thomas Sullivan said in prepared remarks. "We continue to see market weakness in Europe, and slower than expected large new product launches and supplier rationalization efforts constraining capital spending."
Symmetry Medical said it now expects to record revenues of $400 million to $415 million, down from prior guidance of $420 million to $440 million. Earnings per share are now pegged at 14¢-24¢, down from 35¢-47¢, with adjusted EPS of 40¢-50¢, down from 64¢-76¢.
SMA shares were trading at $9.12 apiece as of about 12:50 p.m. today, up 0.8%.