Analogic Corp (ALOG) said Tuesday it returned to a profit for the first quarter, led by a seven percent increase in revenues and improved margins. Quarterly earnings handily topped Wall Street estimates while revenues fell shy of expectations.
The company reaffirmed its revenue guidance for 2015.
Analogic, based in Peabody, Massachusetts, reported first-quarter net earnings of $3.7 million or $0.29 per share compared with a loss of $3.8 million or $0.30 per share last year.
Excluding items, adjusted earnings for the quarter were $0.63 per share compared with earnings of $0.06 per share a year ago.
Analogic is a technology company that makes medical imaging, ultrasound, and security systems and subsystems to original equipment manufacturers and end users in the healthcare and airport security markets.
The company's revenues for the quarter were up 7 percent at $118.3 million compared with $110 million in the prior year.
Analysts polled by Thomson Reuters estimated earnings of $0.50 per share on revenues of $118.7 million for the quarter. Analysts' estimates typically exclude special items.
"Consistent with our expectations, Analogic returned to growth in our first quarter of fiscal 2015, driven by our Medical Imaging and Ultrasound businesses, with significant improvements in gross margin," said CEO Jim Green.
"Market conditions for medical imaging equipment are seeing early signs of improvement and our new CT and ultrasound products are starting to gain traction, all resulting in a favorable outlook for the year. Security and Detection backlog remains strong with revenue on track for the fiscal year."
Gross margin for the quarter climbed 5 points from a year ago to 44 percent, and operating margin to 4 percent from percent.
Results were further strengthened by operating expenses that decreased to $47 million from $48.3 million last year.
For the full year 2015, the company continues to expect revenue growth in the mid-single digits. Analysts expect revenue growth of 5.5 percent.
ALOG closed Tuesday at $76.07, up $1.89 or 2.54%, on the Nasdaq. In after hours, the stock gained $2.56 or 1.95%.
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