Heska (HSKA) Tops Q4 EPS by 9c; Provides FY20 Revenue Outlook

Heska (NASDAQ: HSKA) reported Q4 EPS of $0.07, $0.09 better than the analyst estimate of ($0.02). Revenue for the quarter came in at $33.8 million versus the consensus estimate of $33.91 million.

Kevin Wilson, Heska's Chief Executive Officer and President, commented, "As promised, 2019 was the most transformative building period in the Company\'s history. We did what we said we would do and we have made the Company stronger and more valuable. Heska's core POC Lab Diagnostics business exceeded my 2019 expectations in nearly every way: (1) Heska continued to win net POC Diagnostics market share for the sixth year in a row to reach a historic annual growth rate of 19.7% in POC Lab Consumables; (2) our expanded sales teams won an excellent mix of the best and fastest growing hospitals to capture significant increases in test utilization; and (3) margins grew nicely and we captured significantly better-than-expected annual growth in Months Under Subscription, Minimum Contract Subscription Value, and Monthly Contract Subscription Value. We expect the direction of these positive Heska and broad-based pet healthcare trends to continue in 2020. Offsetting these successes, our reported profitability was reduced by: (1) previously announced softness in legacy contract manufacturing product lines, which are expected to begin returning in 2020, and (2) heavy investment in research and development and go-to-market team expansion. It is hard work making these investments and I am glad we have done so. These investments have reached critical milestones that are necessary for Heska's multi-year success and value creation in this second half of our five-year plan. We are ready."

GUIDANCE:

Heska sees FY2020 revenue of $135-145 million, versus the consensus of $141.76 million.

For earnings history and earnings-related data on Heska (HSKA) click here.

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