Analogic Falls Following Weak Fiscal 3Q Report

NEW YORK (AP) — Analogic Corp. shares slid Friday after the imaging equipment maker reported disappointing third-quarter results, which it said were due to decreased equipment spending from hospitals.

Analogic's profit and revenue both fell short of Wall Street estimates, and the company said Thursday it expects delays in orders for the next few quarters. In Friday afternoon trading, its shares lost $2.85, or 7.4 percent, to $35.60.

Stifel Nicolaus analyst Stephen Levenson wrote that Analogic's medical imaging and ultrasound revenue were disappointing, in part because the stronger dollar led to decreased sales overseas. He cut his price target to $50 per share from $60.

"Hospitals are spending less on large expensive equipment and the reduced spending in the industrial sector has dampened the motion control business," Levenson said in a note to clients.

But Levenson kept a relatively positive view on Analogic, noting that security gear and digital radiography sales were up in the third quarter. He maintained a "Buy" rating on the stock, implying it will rise 30 percent over the next year.