Meridian Bioscience (NASDAQ: VIVO) reported Q3 EPS of $0.16, $0.01 worse than the analyst estimate of $0.17. Revenue for the quarter came in at $50.1 million versus the consensus estimate of $49.17 million.

Highlights

• reported fiscal 2017 third quarter and first nine months net revenues of $50.1 and $151.1 million, respectively, a decrease of 1% and an increase of 1%, respectively, from the same periods of the prior fiscal year;
• reported third quarter operating income of $4.3 million (including a $6.6 million non-cash goodwill impairment charge), a decrease of 69% from the same period of the prior fiscal year;
• reported nine months operating income of $28.6 million (including a $6.6 million non-cash goodwill impairment charge), a decrease of 33% from the same period of the prior fiscal year, which included $1.5 million of costs associated with acquisition activity;
• reported third quarter net earnings of $0.2 million, or $0.01 per diluted share, on a GAAP basis, decreases of 97% and 95%, respectively, compared to the fiscal 2016 third quarter. On a non-GAAP basis, earnings were $6.9 million, or $0.16 per diluted share, decreases of 22% and 24%, respectively, compared to the fiscal 2016 third quarter. Non-GAAP basis excludes the effect of a goodwill impairment charge (see non-GAAP financial measure reconciliation below);
• reported first nine months net earnings of $15.8 million, or $0.37 per diluted share, on a GAAP basis, a 41% decrease compared to the same period of fiscal 2016. On a non-GAAP basis, earnings were $22.5 million, or $0.53 per diluted share, a 20% decrease compared to the non-GAAP earnings of the first nine months of fiscal 2016. Non-GAAP basis excludes the effect of goodwill impairment in the fiscal 2017 period and the effect of costs associated with acquisition activity during the fiscal 2016 period (see non-GAAP financial measure reconciliation below);
• announced the recording of a non-cash goodwill impairment charge of $6.6 million, on both a pre-tax and after-tax basis, in the third quarter of fiscal 2017. Relating to the carrying value of the Company’s Magellan Diagnostics subsidiary (“Magellan”), acquired in March 2016, the impairment reflects management’s assessment of recent FDA activities associated with Magellan’s blood lead tests using venous blood samples and the potential impacts on the timing and level of Magellan’s operating results (see further detail below);
• declared the regular quarterly cash dividend of $0.125 per share for the third quarter of fiscal 2017 (annual indicated rate of $0.50 per share);
• reaffirmed fiscal 2017 guidance of per share diluted earnings between $0.64 and $0.69, excluding the effect of the goodwill impairment charge, on net revenues of $193 million to $199 million.

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