NEW YORK (TheStreet) -- Analogic (ALOG) was plunging 15.79% to $81.31 at 2:04 p.m. on Friday after the company, which provides technology for medical imaging, security and ultrasounds, reported second-quarter results that fell short of analysts' expectations despite a surge in profits.
The Peabody, Mass.-based reported a profit increase to $19.3 million, or $1.53 a share, from $9.8 million, or 78 cents a share, in the same period one year earlier. These figures included tax benefits of $8.8 million, or 69 cents a share, chiefly linked to tax reduction expected to be payable in the future associated with Canadian operations.
Adjusted earnings totaled $14.8 million, or $1.17 a share. Revenues climbed 2% year over year to $141.4 million from $138.6 million. Analysts expected earnings of $1.20 per share on revenue of $151.71 million, according Thomson Reuters.
Gross margin improved to 43% from 40%.
Analogic also said it closed its manufacturing operations in Denver and would close a facility in Vancouver by the end of the fiscal year, according to a report in The Boston Business Journal.
Analogic updated its guidance for the full year 2014 and now expects revenues and operating margin to be approximately flat with 2013; the company previously anticipated revenue growth in the high single digits compared to 2013.
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- ALOG has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, ALOG has a quick ratio of 2.42, which demonstrates the ability of the company to cover short-term liquidity needs.
- Net operating cash flow has significantly increased by 258.07% to $10.66 million when compared to the same quarter last year. In addition, ANALOGIC CORP has also vastly surpassed the industry average cash flow growth rate of -0.26%.
- 43.90% is the gross profit margin for ANALOGIC CORP which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -3.42% is in-line with the industry average.
- Compared to its closing price of one year ago, ALOG's share price has jumped by 28.28%, exceeding the performance of the broader market during that same time frame. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- ANALOGIC CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, ANALOGIC CORP reported lower earnings of $2.47 versus $3.46 in the prior year. This year, the market expects an improvement in earnings ($4.56 versus $2.47).
- You can view the full analysis from the report here: ALOG Ratings Report
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