Beckman tops expectations on demand for medical tests

Beckman Coulter Inc. on Friday posted a better-than-expected fourth-quarter profit, helped by stronger demand for its medical diagnostic tests.

“What this highlights is that clinical diagnostics is a very steady business,” said Quintin Lai, an analyst with financial services firm Robert W. Baird & Co. “It’s not a cyclical business, so all of these macroeconomic issues don’t affect it. People still get sick and need treatment.”

Lai said Beckman’s revenue growth suggests that the company broadened its market share, tracking ahead of industry growth of about 3% to 5%.

Beckman competes in this area with Abbott Laboratories, Johnson & Johnson, Roche and Siemens.

The Fullerton-based company posted net income of $44.8 million, or 69 cents a share, down from $62.3 million, or 97 cents, a year earlier.

Excluding a write-off and restructuring costs, earnings were $1.08 a share, compared with an average Wall Street estimate of $1.03, as compiled by Reuters Estimates.

Revenue climbed 10.8% to $789 million, as strength in Beckman’s clinical diagnostic products business offset weakness in its life science business. Foreign currency rates also boosted revenue.

Analysts were expecting sales of $765.4 million, according to Reuters Estimates.

For the full year, the company reported earnings of $3.30 a share, up 13% from 2006.

Beckman reaffirmed its 2008 revenue growth forecast of 7% to 9%, assuming stable currency, and predicted earnings per share of $3.50 to $3.65.

“Our goal for the clinical diagnostics business is to continue to exceed 10% revenue growth in 2008,” said Beckman President and Chief Executive Scott Garrett, who will also become chairman of the board April 24.

“We expect revenue from life science products to be about flat with the prior year,” Garrett said.