Diagnostic test kit maker Meridian Bioscience (VIVO) reported third-quarter fiscal 2011 (ended June 30) earnings of 17 cents per share, missing the Zacks Consensus Estimate of 21 cents while edging past the year-ago earnings of 16 cents.
Profit for the quarter rose 6.4% year over year to $6.8 million owing to a double-digit growth in sales. Revenues climbed 18.3% year over year to $40.1 million, boosted by healthy performance of the Cincinnati-based company’s core U.S. Diagnostics business. However, sales missed the Zacks Consensus Estimate of $43 million.
Revenues from the U.S. Diagnostics business jumped roughly 12.8% to $23.8 million. European Diagnostics division sales rose 6.3% to $6.6 million. However, on a local currency basis, European Diagnostics revenues dipped 6% in the quarter.
Meridian’s Life Science segment revenues surged 47.5% to $9.6 million, bolstered by the contributions (of $4 million) from the acquisition of London-based molecular biology reagents maker Bioline. However, excluding such contribution, revenues clipped 12%.
Within the Diagnostics business, strategic focus products such as C. difficile tests (up 13% globally), Foodborne tests (up 28%) and H. pylori tests (up 7%) performed strongly in the third quarter.
The company’s C. difficile test illumigene is gaining strong traction having achieved roughly 500 placements globally till date. Year-to-date, the product has generated $6 million in sales.
Meridian exited the quarter with cash and short-term investments of $25.6 million, down 56% year over year. It remains a zero debt company. The company’s Board has declared cash dividend of 19 cents per share for the third quarter, payable on August 11, 2011, to shareholders of record as on August 1, 2011.
Based on the third quarter results and expectations for the fourth quarter, the company has chopped its forecasts for fiscal 2011 (ending September 30). Meridian now expects net sales in the range of $160-$163 million versus its earlier forecast of $165-$170 million.
Earnings per share projection have been reduced to a band of 68-71 cents from 77-82 cents. The current Zacks Consensus Estimates for revenues and earnings are $162 million and 78 cents, respectively.
Meridian specializes in developing diagnostic test kits for multiple serious and infectious diseases. The company’s Diagnostics business faces strong competition from Abbott Laboratories (ABT), Becton, Dickinson and Company (BDX), Thermo Fisher (TMO) and Siemens (SI).
Meridian hopes sales in fiscal 2012 to be boosted by illumigene and new products. The company secured, in May 2011, the U.S. approval for its new C. difficile test dubbed Premier C. difficile GDH. Moreover, Meridian is seeking U.S. approval for illumigene GBS (for Group B streptococcus), its second molecular test, with sales outside the U.S. is expected to commence in the fourth quarter. The company plans to unveil its fiscal 2012 guidance in late August or early September.
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