Analogic Profit Rises, But Misses View; Shares Down 12%

(RTTNews) - Electronics product maker Analogic Corp. (ALOG), Thursday reported a surge in profit for the second quarter, helped mainly by a huge tax benefit as well as improved revenues and margins. Nevertheless, shares of Analogic dropped 12 percent in extended-trade, after earnings and revenues for the quarter fell short of Wall Street estimates.

Peabody, Massachusetts-based Analogic's second-quarter profit rose to $19.3 million or $1.53 per share from $9.8 million or $0.78 per share last year.

Second-quarter results included discrete tax benefits of $8.8 million or $0.69 per share, primarily associated with a reduction in taxes expected to be payable in the future associated with Canadian operations.

Adjusted earnings for the quarter were $14.8 million or $1.17 per share. On average, three analysts polled by Thomson Reuters expected earnings of $1.20 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the second quarter grew 2 percent to $141.4 million from $138.6 million last year. Nevertheless, it was well short of analysts' consensus estimate of $151.71 million.

Gross margin for the quarter improved 3 points to 43 percent.

Chief Executive Jim Green said, "Our second quarter results demonstrated solid product revenue and gross margin expansion, partially offset by reduced engineering revenue and discontinuation of legacy products as we discussed last quarter. Our improved gross margins, which reflect the shift toward our high margin direct ultrasound business and our ongoing focus on efficiency, contributed nicely to our bottom line."

Looking forward to the full year 2014, the company now expects revenues and operating margin to be roughly flat with 2013. Earlier, Analogic expected revenue growth in the upper single digits compared to 2013.

ALOG closed Wednesday's trading at $96.56, up $0.03 or 0.03%, on the Nasdaq. The stock, however, plunged $11.56 or 11.97% in after-hours trade.