Specialty Posts Profit Far Short of Estimates
- Share via
Specialty Laboratories Inc. shares dropped 35% after the developer of laboratory tests reported first-quarter profit well below analysts’ expectations.
The shares fell $6.25 to $11.75 on the New York Stock Exchange, after sinking as low as $10.25, a 52-week low.
Specialty’s shares, which began trading in December 2000, have lost 57% in the last year.
First-quarter net income fell 41% to $1.99 million, or 9 cents a share, from $3.4 million, or 15 cents a share, a year earlier, the Santa Monica-based company said.
Revenue declined slightly to $43.6 million from $43.8 million.
Wall Street was expecting per-share earnings of 16 cents, the average estimate of six analysts polled by Thomson Financial/First Call.
Specialty, which offers more than 3,200 specialized tests, said it was hurt by an industrywide consolidation of laboratory services, a slowdown in new hospital accounts and higher costs.
Company officials couldn’t be reached for comment.
*
(BEGIN TEXT OF INFOBOX)
Downward Spiral
(text of infobox not included)
Inside the business of entertainment
The Wide Shot brings you news, analysis and insights on everything from streaming wars to production — and what it all means for the future.
You may occasionally receive promotional content from the Los Angeles Times.
