), a medical products company focused on integrating rapid
diagnostics with health management, reported first quarter 2013
adjusted earnings per share of 51 cents beating the Zacks
Consensus Estimate of 48 cents.
Reported net income was about $7.2 million (or earnings of 9
cents per share) in the first quarter compared to a net loss of
$4.1 million (or loss of 5 cents per share) in the year-ago
quarter. Reported results include several one-time or
extraordinary items such as restructuring charges and
Net revenues came in at $739.2 million in the reported
quarter, up 10.2% year over year, surpassing the Zacks Consensus
Estimate of $724 million. Adjusted revenue came to $739.9 million
in the reported quarter.
Net revenues from Professional Diagnostics were $582.5 million
(includes license and royalty revenues of $3.9 million), up 12%
year over year. Adjusted organic growth for the segment was 1.1%
on a year-over-year basis.
Under the Professional Diagnostics segment, revenues from
Cardiology ($114.9 million) declined 17% year over year. Revenues
from Infectious disease ($189.8 million) increased 26% year over
year whereas revenues from Toxicology ($149 million) and other
sources ($74.7 million) increased 22% and dropped 1%,
respectively, on a year-over-year basis, respectively. Diabetes
business line accounted for $50.1 million of segment revenues, up
78% year over year.
Revenues from the Health Information Solutions segment were
$134.2 million, up 3% year over year. Revenue growth was driven
by coagulation monitoring programs in the residential
Under the Health Information Solutions segment, revenues from
Disease and Case Management ($54.1 million) rose 1% and revenues
from Wellness ($26.3 million) declined 3% year over year.
Revenues from Women's & Children's Health ($29.1 million) and
Patient Self-Testing Services ($24.7 million) were down 2% and up
20% on a year-over-year basis, respectively.
Gross margin dropped to 49% in the reported quarter from 53%
in the year-ago quarter. Operating margin dropped to 4.1% from
5.2% over the same timeframe.
Alere exited the first quarter with cash and cash equivalents
of about $327.2 million, down marginally 0.3% year over year.
Total long-term debt (net of current portion) amounted to
$3,800.5 million, up 4.4% year over year.
Diagnostic tests are shifting closer to the consumers and into
the home testing market, as more diagnostic tests are developed
to monitor patients rather than simply diagnose them. Alere's
strategy of combining disease management with point-of-care
testing ('POCT'), in a manner that encourages patients to take
responsibility over their overall health care, is viewed as a
prudent approach while at the same time ensuring
In addition to growing revenues through a combined strategy of
continued acquisitions and measured organic growth, the company
is committed to improvement of its operating margin. Further, its
product pipeline is strong, which has been developed through a
combination of internal R&D as well as serial
Alere carries a Zacks Rank #3 (Hold). We are more positive
), which carries a Zacks Rank #1 (Strong Buy). We are also
Becton, Dickinson and Company
The Cooper Companies Inc.
), each of which carry a Zacks Rank #2 (Buy).
ALERE INC (ALR): Free Stock Analysis Report
BECTON DICKINSO (BDX): Free Stock Analysis
COOPER COS (COO): Free Stock Analysis Report
CONCEPTUS INC (CPTS): Free Stock Analysis
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