Barclays Maintains an 'Equalweight' on Beckman Coulter (BEC); Q1 Miss; Expect DHR Deal Close Soon
BEC Hot Sheet
Rating Summary:0 Buy, 7 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 19 | Down: 16 | New: 82
Barclays maintains an 'Equalweight' on Beckman Coulter (NYSE: BEC), PT $83.50.
Barclays analyst says, "BEC reported softer-than-expected 1Q11 top-line of $896M (+1.6% yoy, with FX benefit of 1.1% yoy) vs. our estimate of $904M and street consensus of $902M. The revenue miss was attributed to continued weak macro trends (declining US healthcare utilization, physician visits), troponin restrictions in the US due to ongoing quality issues, as well as cutbacks on pharma and government spend, especially in Europe. While recurring revenue was modestly up (+2.7% yoy, 1.7% constant currency), driven by growth in cellular analysis and immunoassay in Asia and emerging markets, BEC continued to see weakness in US immunoassay and molecular diagnostics."
"While non-GAAP adjustments were not provided, we estimate non-GAAP earnings of $0.62 (vs. our estimate of $0.82 and street forecast of $0.86). We adjusted out $14.1M of inventory write-down and a total of $30.1M related to incremental QA/QC improvement initiatives from cost of sales."
(As a reminder, BEC is currently in the process of being acquired by Danaher (NYSE: DHR), and the transaction is expected to close in June 2011)
For more ratings news on Beckman Coulter click here and for the rating history of Beckman Coulter click here.
Shares of Beckman Coulter closed at $83.00 yesterday, with a 52 week range of $43.95-$83.22.
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Barclays analyst says, "BEC reported softer-than-expected 1Q11 top-line of $896M (+1.6% yoy, with FX benefit of 1.1% yoy) vs. our estimate of $904M and street consensus of $902M. The revenue miss was attributed to continued weak macro trends (declining US healthcare utilization, physician visits), troponin restrictions in the US due to ongoing quality issues, as well as cutbacks on pharma and government spend, especially in Europe. While recurring revenue was modestly up (+2.7% yoy, 1.7% constant currency), driven by growth in cellular analysis and immunoassay in Asia and emerging markets, BEC continued to see weakness in US immunoassay and molecular diagnostics."
"While non-GAAP adjustments were not provided, we estimate non-GAAP earnings of $0.62 (vs. our estimate of $0.82 and street forecast of $0.86). We adjusted out $14.1M of inventory write-down and a total of $30.1M related to incremental QA/QC improvement initiatives from cost of sales."
(As a reminder, BEC is currently in the process of being acquired by Danaher (NYSE: DHR), and the transaction is expected to close in June 2011)
For more ratings news on Beckman Coulter click here and for the rating history of Beckman Coulter click here.
Shares of Beckman Coulter closed at $83.00 yesterday, with a 52 week range of $43.95-$83.22.
Discover Wall Street's best ratings calls with the pros - Ratings Insider Elite. Free Trial!
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