Analogic (ALOG) Misses Q4 EPS by 50c

September 19, 2017 4:17 PM

Analogic (NASDAQ: ALOG) reported Q4 EPS of $0.00, $0.50 worse than the analyst estimate of $0.50. Revenue for the quarter came in at $111.6 million versus the consensus estimate of $115.8 million.

Fred Parks, president and CEO, commented, “In fiscal 2017, we realigned the company’s resources with our core businesses. Our cost structure is now much leaner. We are on track to realize $24 million in annual cost savings and we remain focused on further improving our cost structure. As a result, we expect improved profitability in fiscal 2018 despite lower revenues. These actions will also allow us to focus our BK Ultrasound business in its core markets of urology and surgery, and pursue continued growth opportunities in Security and Medical Imaging.

Parks continued, “The Board is focused on maximizing stockholder value. While we are confident in our growth plans, we believe that a sale of the company may create more certain value for our stockholders. Analogic remains committed to providing our customers with innovative technology and world-class products while we pursue this sale process.”

Strategic Review Process for Sale of Company Underway The Company announced in June 2017 that it intended to explore strategic alternatives. The Board of Directors has engaged Citi as financial advisor and initiated a process for the sale of the entire Company to maximize stockholder value on an accelerated timeline. The sale process is underway and the Company will provide updates as appropriate. While there can be no assurance that the process will result in a transaction, the Board is committed to the process.

GUIDANCE:

Analogic sees FY2018 EPS of $2.70-$2.90, versus the consensus of $2.60. Analogic sees FY2018 revenue of $445-460 million, versus the consensus of $490.6 million.

For earnings history and earnings-related data on Analogic (ALOG) click here.

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