Beckman Coulter Inc. reported lower first-quarter profits and sales but beat Wall Street’s expectations and upped its 2006 outlook, sending its shares about 5% higher in Wednesday trading.
The company, which makes medical diagnostic and research instruments, said first-quarter earnings were $32.6 million, off 21% from a year earlier.
But the number easily beat Wall Street’s expectation of $24 million in profits.
Sales were $569 million, versus $576 million last year. Analysts were expecting $567 million in quarterly sales.
The lower quarterly results versus a year earlier stem from a change in the way Beckman Coulter accounts for leases of its instruments.
Labs running medical tests for doctors and hospitals use Beckman’s products. Researchers also use Beckman’s products to analyze genetics and develop drugs.
In July, Beckman switched to operating leases, where revenue is spread over the life of the lease. Before, the company used a sales lease method, in which the value of the deal was recognized at once.
Analysts called the quarter a “relief” given the transition playing out at the company.
Beckman upped its earnings outlook for 2006 to about $190 million from an earlier view of up to $188 million.
The company tightened its sales forecast to $2.53 billion to $2.59 billion. In February, Beckman said it expected yearly sales of $2.52 billion and $2.60 billion.
For the current quarter, Beckman said it could see sales of $620 million to $645 million and earnings of up to $47 million.
