Diagnostic test kits maker Meridian Bioscience (VIVO) has issued its guidance for fiscal 2012. The Cincinnati-based company envisions net sales for the year in the range of $183 million to $192 million with earnings per share expected between 85 cents and 89 cents.
Net income for fiscal 2012 has been projected to shoot up between 20% and 30% year over year (excluding reorganization charges in fiscal 2011). The guidance excludes the impact of acquisitions which Meridian may complete during the year.
However, Meridian expects its full year fiscal 2011 results to come in at the low-end of its current forecasted range of $160 million to $163 million. The company, in July 2011, chopped its revenues and earnings forecast for fiscal 2011 based on sustained weakness across its Life Science and European Diagnostics businesses.
The current Zacks Consensus Estimate for revenues and earnings are $162 million and 70 cents, respectively, for fiscal 2011 and $185 million and 87 cents, respectively, for fiscal 2012.
Meridian specializes in developing diagnostic test kits for multiple serious and infectious diseases. Its acquisition of London-based molecular biology reagents maker Bioline has unlocked opportunities for growth through expanded product range and geographic expansion. Meridian’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 will be boosted by its new molecular test illumigene and Bioline products as well as its foodborne and H. pylori tests. The company is optimistic that sustained adoption of the illumigene platform, growth in core products and opportunities in Europe will help it drive significant growth in sales and earnings in fiscal 2012 and beyond. Moreover, the company is evaluating opportunities for suitable acquisitions.
The company noted that its fiscal 2012 outlook includes full year sales from its C. difficile test illumigene as well as revenues from illumigene GBS (for Group B streptococcus), its second molecular test, which is currently awaiting U.S. approval with a launch expected in first-quarter 2012.
Moreover, Meridian expects modest sales from its illumigene Mycoplasma pneumoniae test in fiscal 2012, which is likely to be launched overseas in the second quarter. However, the company, as of now, does not expect any contribution from its fourth and fifth tests illumigene Group A and illumigene Bordatella pertussis/parapertussis, respectively.
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