This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Meridian Bioscience Provides Preliminary First Quarter Operating Results, Reaffirms Guidance For Fiscal 2014 And Comments On The Business

Stocks in this article: VIVO

Meridian Bioscience, Inc. (NASDAQ: VIVO) today announced weaker than expected preliminary operating results for the first quarter ended December 31, 2013.

Fiscal 2014 First Quarter Preliminary Outlook

Due to factors including reduced hospital admissions and declining C. difficile incidence rates in hospitals putting further pressure on an already competitive market, Life Science shipments delayed into the second quarter of fiscal 2014, the timing of the start of the influenza season and related revenue impact, and food test ordering patterns, first quarter net sales are expected to be approximately $44.8 million, or down 1% compared with fiscal 2013 first quarter net sales of $45.4 million. Based on these net sales, diluted earnings per share are expected to be between $.17 and $.18. This compares to diluted earnings per share of $.20 for the first quarter of fiscal 2013. Meridian does not provide sales and earnings guidance on a quarterly basis. However, analyst estimates for net sales range from $48 million to $49.5 million (consensus median estimate of $49 million) and diluted earnings per share estimates range from $.21 to $.25 (consensus median estimate of $.22).

Fiscal 2014 Guidance

Based on second quarter to-date diagnostics order volume and sales, as well as expected higher than initially planned revenues from influenza, and Life Science shipments to-date (timing items that negatively affected the first quarter), management expects the second quarter ending March 31, 2014, sales and earnings will be above the Company's previous internal expectations. Based on this information, management is reaffirming its initial guidance of net sales of $203 million to $208 million and diluted earnings per share of $0.98 to $1.03.

Business Commentary

Below is a brief commentary on fiscal 2014 first quarter revenues by Meridian’s reportable segments, Diagnostics and Life Science.

Diagnostics: Diagnostics revenues of $34.8 million decreased 2% from the first quarter of fiscal 2013. Ordering patterns, timing of the flu season, and trends in hospital admissions and lower C. difficile incidence rates in North America drove the bulk of the decline. illumigene molecular revenues increased 15% driven by illumigene Group B strep and illumigene Group A strep. Immunoassay revenues declined 7%, driven by flat foodborne sales (ordering patterns) and a 35% decline in respiratory sales in North America (early start to flu season in fiscal 2013 vs. fiscal 2014).

Life Science :Life Science revenues increased 3% to $10 million, with our Bioline molecular component increasing 16% and our immunoassay component business declining 7% due to customers delaying shipments to the second quarter.

John A. Kraeutler, Chief Executive Officer, stated, “Clearly we are disappointed with the results of the first quarter. While additional spending for the Medical Device Tax and equity incentives contributed to earnings being off the prior year, revenue shortfalls in the C. difficile, foodborne, and influenza/respiratory testing categories, along with core Life Science, were the basis for the miss. While we believe a significant portion of the shortfall is a shift in revenues from the first quarter to the second quarter (over $2.5 million), in our Diagnostics unit we are placing greater emphasis on tests for infectious disease in ambulatory patients; primarily illumigene Group B and Group A strep, along with tests for influenza and other respiratory diseases. We also believe that illumigene Pertussis, an aid in diagnosing whooping cough, will provide meaningful revenues once FDA clearance is received. Our Life Science unit is expected to perform very well in the second quarter and perform at expectations throughout the remainder of the year.”

FORWARD LOOKING STATEMENTS

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,356.87 +288.00 1.69%
S&P 500 2,012.89 +40.15 2.04%
NASDAQ 4,644.3120 +96.4780 2.12%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs