Abaxis Q2 Profit Misses Estimates

(RTTNews) - Abaxis, Inc. (ABAX), a global diagnostics company manufacturing point-of-care blood analysis instruments and consumables for the medical and veterinary markets worldwide, reported second-quarter net income from continuing operations of $11.5 million (which includes a gain from sale of an equity method investment of $3.8 million after tax) compared to $7.8 million for the fiscal quarter ended September 30, 2015. Net income per share from continuing operations was $0.51, compared to $0.34 last year, up 50%. Excluding the effect of a gain, non-GAAP net income per share from continuing operations was $0.34 for the second quarter of fiscal 2017. On average, nine analysts polled by Thomson Reuters expected the company to report profit per share of $0.35 for the quarter. Analysts' estimates typically exclude special items.

For the fiscal quarter ended September 30, 2016, Abaxis reported revenues from continuing operations of $58.6 million, as compared with revenues of $56.0 million for the comparable period last year, an increase of 5%. Analysts expected revenue of $60.69 million for the quarter.

Clint Severson, CEO of Abaxis, said, "Medical market revenues increased nine percent and veterinary market revenues grew by four percent, compared to the same period last year. Consumables sales accounted for 78% of total revenues and increased by nine percent during the quarter, compared to the same period last year. Additionally, we achieved international sales growth of seven percent over the same period last year. We were particularly pleased with revenue growth of 19% in medical reagent discs over the same period last year and unit sales of medical reagent discs now account for 40% of total reagent disc unit sales."