Meridian Bioscience (VIVO) Reports In-Line Q2 EPS, Beats on Revenues; Boosts FY18 EPS Outlook

Meridian Bioscience (NASDAQ: VIVO) reported Q2 EPS of $0.21, in-line with the analyst estimate of $0.21. Revenue for the quarter came in at $56.5 million versus the consensus estimate of $55.04 million.

GENERAL HIGHLIGHTS

• Reported record fiscal 2018 second quarter and first six months net revenues of $56.5 million and $108.7 million, respectively, increases of 4% and 8%, respectively, from the same periods of the prior fiscal year;
• reported second quarter operating income of $7.7 million (including $4.9 million of costs associated with executive transition and realignment, and litigation costs), a decrease of 46% from the same period of the prior fiscal year;
• reported six months operating income of $15.7 million (including $6.4 million of costs associated with executive transition and realignment, and litigation costs), a decrease of 35% from the same period of the prior fiscal year;
• reported second quarter net earnings of $5.3 million, or $0.12 per diluted share, on a GAAP basis, decreases of 43% and 45%, respectively, compared to the fiscal 2017 second quarter. On a non-GAAP basis, earnings were $8.9 million, or $0.21 per diluted share, decreases of 5% each compared to the fiscal 2017 second quarter. Non-GAAP basis excludes the effect of executive transition and realignment costs, and litigation costs (see non-GAAP financial measure reconciliation below);
• reported first six months net earnings of $11.6 million, or $0.27 per diluted share, on a GAAP basis, decreases of 26% and 27%, respectively, compared to the same period of fiscal 2017. On a non-GAAP basis, earnings were $15.4 million, or $0.36 per diluted share, decreases of 1% and 3%, respectively, compared to the same period of fiscal 2017. Non-GAAP basis excludes the effect of executive transition and realignment costs, litigation costs and certain one-time tax effects of the recently-enacted U.S. Tax Cuts and Jobs Act (the “tax reform act”) (see non-GAAP financial measure reconciliation below);
• declared the regular quarterly cash dividend of $0.125 per share for the second quarter of fiscal 2018 (annual indicated rate of $0.50 per share); and
• updated its fiscal 2018 guidance of per share diluted earnings to between $0.69 and $0.72 on a non-GAAP basis on net revenues of $209 million to $214 million.

FISCAL 2018 GUIDANCE UPDATED

The Company now expects revenues for the fiscal year ending September 30, 2018 of between $209 million to $214 million, compared to the previous guidance range of $207 million to $212 million.

Management expects non-GAAP net earnings for fiscal 2018 to be between $0.69 and $0.72 per share, an increase from the previously published range of $0.65 to $0.68. Non-GAAP earnings per share for fiscal year 2018 excludes the impacts of litigation costs, executive transition and realignment costs, potential future costs associated with the realignment of our organizational structure and the one-time benefit of tax reform, namely the re-measurement of deferred tax liabilities and the repatriation transition tax. Several of these excluded amounts pertain to events that have not yet occurred and are not currently possible to estimate with a reasonable degree of accuracy and could differ materially. Therefore, no reconciliation to GAAP amounts has been provided.

These per share estimates assume an increase in average shares outstanding from approximately 42.6 million at fiscal 2017 year-end to approximately 42.8 million at fiscal 2018 year-end.

The revenue and earnings guidance provided in this press release is derived from expected internal growth and does not include the impact of any acquisitions the Company may complete during fiscal 2018.

GUIDANCE:

Meridian Bioscience sees FY2018 EPS of $0.69-$0.72, versus the consensus of $0.70.

For earnings history and earnings-related data on Meridian Bioscience (VIVO) click here.

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