) reported a whopping 40.5% rise in third-quarter 2013 adjusted
earnings per share to 54 cents from 40 cents in the year-ago
quarter. With this, earnings beat the Zacks Consensus Estimate by
a significant margin of 17 cents.
Following the earnings release, shares of this diagnostics and
services company increased 5.9% to $34.0 as on Nov 5.
Net revenues went up 9.0% to $753.9 million, outpacing the Zacks
Consensus Estimate of $740 million. Adjusted net revenues rose
9.0% to $754.4 million from $692.3 million at the end of
Adjusted operating income rose 13.8% to $126.8 million from
$111.4 million a year ago. Adjusted operating margin improved 70
basis points (bps) to 16.8% from 16.1% a year ago.
Net revenues from
grew 11.2% to $590.8 million while adjusted net product and
services revenues increased 11.0% to $587.8 million. The
company's recent professional diagnostic acquisitions contributed
$30.6 million to revenue improvement in the third quarter,
partially offset by dispositions-related revenue reduction of
$2.3 million. Adjusted operating income increased 17.4% to $138.2
million while adjusted operating margin rose 130 bps to 23.4%.
Net revenues from the
Health Information Solutions
segment inched down 0.6% to $134.2 million from $135.1 million in
the third quarter of 2012. Despite the decrease in revenues,
adjusted operating income more than doubled to $7.5 million (5.6%
of revenues) from $3.0 million (2.2%) in the comparable year-ago
Net revenues from
scaled up 16.1% to $28.9 million. Adjusted operating income
decreased 29.8% to $3.9 million, while adjusted operating margin
dropped 860 bps to 13.2%, due to higher expenses in the reported
ALR exited the third quarter with cash and cash equivalents of
about $354.0 million, up 7.8% from $328.3 million as of Dec 31,
2012. Total long-term debt increased to $4.4 billion from $4.2
billion as of Dec 31, 2012.
We are impressed with Alere's third-quarter results, which beat
the Zacks Consensus Estimate at both fronts. The company has
strategically positioned itself for both organic and inorganic
expansion. The company is adequately placed to achieve its
long-term revenue and earnings growth targets based on its new
product cycle, strategic acquisitions and effective execution.
Alere presently carry a Zacks Rank #3 (Hold). Other
better-performing medical stocks that are worth considering
INSYS Therapeutics Inc.
). All these stocks carry a Zacks Rank #1 (Strong Buy).
ALERE INC (ALR): Free Stock Analysis Report
BIO-RAD LABS -A (BIO): Free Stock Analysis
INSYS THERAP (INSY): Free Stock Analysis
NUVASIVE INC (NUVA): Free Stock Analysis
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