Analogic shares droop on Q1 prelims, lowered FY2016 outlook

Analogic (NSDQ:ALOG) released lower-than-expected preliminary earnings results for its 1st quarter of fiscal year 2016, lowering its outlook for the year and seeing stocks slump in response.

The company said it expects revenue of approximately $115 million for the quarter, below the Street’s expectations of $122.3 million. Analogic did not release sales numbers, but said it expects a GAAP diluted EPS of approximately 11¢.

Preliminary diluted non-GAAP EPS is expected to be 55¢, 22¢ below the Street’s expectations for the quarter. Analogic said its diluted EPS was affected by a restructuring charge of approximately $3 million.

Shares have slumped in response, trading down nearly 11% at $79.82 as of 1:28 p.m. EST.

“Although we normally do not provide quarterly guidance, we wanted to provide an update on our expected performance. In addition to the typical seasonality of our business, our 1st quarter also reflects delays in revenue recognition, the timing of new product introductions and foreign currency. Although we’re starting the year down slightly across the business, we expect a return to growth for the full year,” CEO Jim Green said in prepared remarks.

The Peabody, Mass.-based company lowered its expectations for the coming year, predicting revenue growth in the low-single digits, down from previously expected mid-single digit growth. Analogic reaffirmed its 2016 profitability outlook, expecting non-GAAP operating margins to improve by 1 point compared with FY2015.

“While we expect 1st quarter revenues to be down slightly year-over-year, we believe that we will achieve low-single digit revenue growth for the full fiscal year. We continue to expect solid performance in our core businesses, with likely payment delays in RapidDNA and a faster than expected decline in legacy OEM probes impacting our overall revenue for the year. We continue to maintain our full year profitability outlook through our ongoing focus on cost,” Green said in a press release.

Earlier this month, AngioDynamics (NSDQ:ANGO) said its CFO and exec veep Mark Frost resigned from his position to join Analogic as senior veep, treasurer & CFO.

AngioDynamic’s veep and global controller Michael Trimach will serve as Interim CFO as the company searches for a permanent replacement. The Albany, N.Y.-based company said Frost will stay on to facilitate a smooth transition of duties to the new CFO.

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