Natus Medical shares dip on missed Q2 release

Natus Medical (NSDQ:BABY) saw shares fall over 2% yesterday after releasing 2nd quarter earnings that missed the mark on earnings per share and revenue.

The Pleasanton, Calif.-based company reported profits of $10.5 million, or 32¢ per share, on sales of $96 million for the 3 months ended June 30, 2016.

Adjusted to exclude 1-time items, earnings per share were 39¢, a few cents short of the 42¢ adjusted EPS that analysts on Wall Street were looking for. Revenue was also off by over $1.5 million, with the Street expecting Natus to bring in $97.8 million.

Shares drooped just over 2% in trading yesterday, opening at $39.82 and closing at $38.86.

“I am very pleased with our record 2nd quarter revenues and earnings per share. Our domestic neurodiagnostic and newborn care businesses reported record results in the second quarter. Our fast growing new service initiatives continued their strong performance as NicView revenues grew by 90%, Peloton by 80% and GND by 45% verse our 2nd quarter last year. We remain committed to achieving our full year 2016 non-Gaap operating margin goal of 20%. We recently announced the acquisition of RetCam, the worldwide leader in imaging systems used to diagnose and monitor a range of ophthalmic maladies in premature infants. We believe RetCam technology has exciting growth opportunities in the years ahead and are looking forward to further developing the newborn retinal imaging and screening market. Our growth strategy continues to include selective acquisitions like RetCam and potentially larger acquisitions that will expand our product offerings in the markets we serve,” CEO Jim Hawkins said in an SEC filing.

Along with the 2nd quarter numbers, Natus released updated guidance for the next quarter and full year. In Q3, Natus expects to bring in revenue between $97 and $98 million, with GAAP earnings per share between 35¢ and 37¢ and non-GAAP between 41¢ and 43¢.

For the full year, Natus said it expects revenue between $388 and $390 million, up from previous guidance of between $378 and $382 million. The company adjusted its non-GAAP earnings per share guidance from between $1.61 and $1.65 to between $1.67 and $1.70.

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