Natus Medical (BABY) Tops Q2 EPS by 9c, Slight Beat on Revenues; Lowers FY18 EPS/Revenue Outlooks

Natus Medical (NASDAQ: BABY) reported Q2 EPS of $0.35, $0.09 better than the analyst estimate of $0.26. Revenue for the quarter came in at $130.7 million versus the consensus estimate of $130.5 million.

• Reports record second quarter revenue of $130.7 million
• Reports second quarter GAAP loss per share of $0.08 and non-GAAP earnings per share of $0.35
• Updates annual revenue and earnings guidance for 2018

“Our non-GAAP earnings per share considerably exceeded our guidance at 35 cents. Our improved margins reflect strength in our neuro business where organic revenue grew 2% in the quarter. The quarter’s results also reflect meaningful progress in the integration of Otometrics and solid profitability from our newborn care business,” said Jonathan Kennedy, President and Chief Executive Officer of Natus.

“Our updated outlook reflects our assessment of the effects of potentially shifting seasonality and global trade uncertainty, which affects our visibility into second half results,” Kennedy continued.

Financial Guidance

For the third quarter of 2018, the Company provided revenue guidance to $131.0 million to $135.0 million and non-GAAP earnings per share guidance of $0.40 to $0.44.

For the full year 2018, the Company updated its revenue guidance to $525.0 million to $535.0 million from $535.0 million to $540.0 million and updated its non-GAAP earnings per share guidance to $1.50 to $1.60 from $1.60 to $1.65.

The Company's non-GAAP earnings per share guidance excludes charges for amortization expense associated with intangible assets from prior acquisitions, certain other expenses, and related tax effects, which the Company expects to be approximately $8.9 million and $47.3 million for the third quarter 2018 and full year, respectively, and which the Company expects will reduce GAAP earnings per share by approximately $0.21 and $1.15 for the respective periods.

GUIDANCE:

Natus Medical sees FY2018 EPS of $1.50-$1.60, versus the consensus of $1.59. Natus Medical sees FY2018 revenue of $525-535 million, versus the consensus of $536.87 million.

For earnings history and earnings-related data on Natus Medical (BABY) click here.

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