Inverness Posts 1Q Profit, Beats Street

WALTHAM, Mass. (AP) — Medical diagnostics company Inverness Medical Innovations Inc. moved to a first-quarter profit Monday, crediting improved sales from recently acquired businesses.

The company's adjusted profit surpassed Wall Street expectations, and Inverness shares rose $2.37, or 8.6 percent, to $29.99 in morning trading.

Inverness said after paying preferred dividends it earned $771,000, or a penny per share in the first quarter, after losing $4.2 million, or 5 cents per share, a year ago. Excluding one-time costs like amortization and stock-based compensation, the company said its profit totaled $50.6 million, or 61 cents per share. Revenue grew 19 percent, to $443.9 million from $372.2 million.

According to Thomson Reuters, analysts expected a more modest profit of 57 cents per share, and higher revenue of $452.6 million.

Inverness said most of the gains in revenue came from smaller businesses it purchased over the last year. Those businesses included Cholestech and HemoSense, which were added to its health management business.

The company reported an adjusted profit of 48 cents per share a year ago.