Despite a crippling recession which puts it in the epicenter of the European debt crisis, it still seems Southern Europe puts a premium on not just the beauty of its land, but those of its people as well.
On Wednesday Allergan (NYSE:AGN) reported stronger than expected sales of its breast implants, Botox and other aesthetic devices in places like Spain, where the unemployment rate tips 24% – more than 3 times that of the U.S.
It seems the business of beauty is still remarkably resilient in these dark times – resilient enough that it prompted Allergan chairman, president & CEO David Pyott to wax poetic during a conference call with investors.
"Southern Europe is incredibly encouraging when I look at breast aesthetics, fillers and neuromodulators," he said. "In fact, I ask myself, how good could life be if we could just cancel this economic recession? It would be heavenly, I can only imagine."
While most medical device firms are experiencing flat to negative growth in the EU, Allergan actually seems to be increasing its business in recession ravaged countries such as Italy and Spain.
"In Italy and Spain, extremely strong sales growth in both facial and breast aesthetics point to the resilience of consumer demand for our products," Pyott said. "Clearly, it’s something to do with the lifestyle of particularly those cultures where people do want to spend even in tough times on their appearance, their apparel and their lifestyle."
The Irvine, Calif.-based company raised its Q1 top line by 9.5%, and posted profits of $229.8 million, or 74¢ per share, on sales of $1.39 billion during the 3 months ended March 31. That compares with profits of $158.3 million, or 51¢ per share, on sales of $1.27 billion during the same period last year.
Cardinal Health kills it in Q3
Cardinal Health (NYSE:CAH) posted top and bottom line growth during the 3 months ended March 31. The Dublin, Ohio-based health products maker posted 3rd-quarter profits of $333 million, or 94¢ per diluted share. That’s a 35.5% spike over earnings of $246 million, or 71¢ per share, during the same period last year.
Adjusted for 1-time items, earnings came to 94¢ per share, still beating Wall Street’s expectations by 6¢. CAH shares were up 2% by the end of the day yesterday, closing at $43.44 per share.
Revenues saw a more modest bump, increasing 3.3% to $26.92 billion, compared with $26.07 billion during Q3 of 2011. Read more
Solta Medical’s losses widen on $4.7M acquisition charge
Solta Medical’s (NSDQ:SLTM) turbo-charged sales growth couldn’t keep up with charges incurred during the 3 months ended March 31.
The Hayward, Calif.-based aesthetics devices maker posted 1st-quarter losses of $8.8 million, or 14¢ per diluted share, more than 7-fold the $1 million, or 2¢ per share, lost during the same period last year. Solta Medical doled out $4.7 million in expected milestone charges related to its September acquisition of Liposonix from Medicis Technologies Corp.
Q1 2012 sales jumped 22.7% to $32.4 million, compared with $26.5 million during Q1 of 2011. Solta launched the next-generation Liposonix non-invasive fat-reduction system in January 2012, and product revenue from treatments tips and consumables made up 52% of the company’s total sales.
Adjusted for 1-time items, the company posted losses of 1¢ per share, beating analyst’s forecasts by 1¢. SLTM shares lost 6% yesterday, closing at $3.02. Read more
The Monrovia, Calif.-based device maker posted 1st-quarter profits of $232,000 million, or 1¢ per diluted share, a 22.7% slide from profits of $300,000, or 4¢ per share, during the same period last year. Adjusted for 1-time items, Solta posted earnings of 4¢ per share, beating Wall Street by 1¢.
The company’s revenues increased 4.4% to $15.5 million, compared with $14.8 million posted in Q1 2011. STAA shares lost 5.8% yesterday, closing at $10.52. Read more
Mela Sciences’ 1st earnings season
Mela Sciences (NSDQ:MELA) posted its 1st earnings report, having launched its MelaFind melanoma detection system in the U.S. and Germany during the 3 months ended March 31.
The Irvington, N.Y.-based device maker posted 1st-quarter losses of $5.8 million, or 19¢ per diluted share, a 16.4% increase from losses of $4.9 million during the same period last year. The company beat Wall Street’s earnings forecast by 1¢.
Initial MelaFind sales came to $11,250 as the company tested the waters with a few installations at dermatologists offices. MELA shares were down 2% to $4.56 as of market close yesterday. Read more