Beckman Coulter climbs on better-than-expected 1Q results
ORANGE COUNTY, Calif.—Medical testing system maker Beckman Coulter Inc. said Wednesday its first-quarter earnings rose 16 percent to beat Wall Street expectations by a penny, and raised the low end of its full-year profit outlook.
For the three months ended March 31, net income grew to $42.9 million, or 67 cents per share, from $37.1 million, or 59 cents per share a year ago. Excluding one-time items, profit totaled 68 cents per share in the latest period.
Revenue rose 19 percent to $730.5 million from $613.6 million a year ago.
Analysts surveyed by Thomson Financial expected profit of 67 cents per share on revenue of $669.4 million.
Shares rose $3.58, or 5.4 percent, to $67.38 in morning trading.
Beckman Coulter said total revenue from clinical diagnostics customers increased 19 percent, while revenue from life sciences customers grew 18 percent. In China, India and other emerging markets, instrument sales doubled.
The company said quarterly revenue rose 11 percent in the U.S., and 19 percent abroad, driven by an increase of more than 50 percent in China and other emerging markets.
Looking ahead, Beckman Coulter now sees full-year earnings per share between $3.55 and $3.65 and capital expenditures of $290 million to $310 million. In February, the company forecast profit of $3.50 to $3.65, compared with Wall Street's $3.59 per share average estimate.
In a note to clients, Banc of America Securities analyst Jon D. Wood said the results "weren't perfect, but good enough."
He said Beckman's robust performance in its core clinical diagnostic franchise, a surprising rebound in its life sciences trajectory and higher instrument sales should put to rest concerns over customers' appetite for capital equipment.
The company's stock is down 12 percent so far this year, reflecting concerns over the health of its hospital customer base, but Wood thinks those worries will dwindle following these results. He rates Beckman Coulter at "Buy" with an $85 price target.
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