Alere (ALR), a medical products company focused on integrating rapid diagnostics with health management, reported fourth-quarter 2012 adjusted earnings per share of 51 cents beating the corresponding Zacks Consensus Estimate of 48 cents. For 2012, the company reported adjusted earnings per share of $2.18 surpassing the Zacks Consensus Estimate of $2.03.
Reported net loss was about $62.7 million (or loss of 84 cents per share) in the fourth quarter compared with a net loss of $363.9 million (or loss of $4.67 per share) in the year-ago quarter.
Revenues
Net revenues came in at $755.8 million in the reported quarter, up 16.1% year over year, surpassing the Zacks Consensus Estimate of $715 million. For 2012, sales were $2,818.8 million, up 18.1% year over year, beating the Zacks Consensus Estimate of $2,780 million.
Segment Analysis
Net revenues from Professional Diagnostics were $600 million (includes license and royalty revenues of $15.8 million), up 19.6% year over year. Adjusted organic growth for the segment was 5% on a year-over-year basis.
Under the Professional Diagnostics segment, revenues from Cardiology ($116.7 million) declined 9% year over year. Revenues from Infectious disease ($190.6 million) increased 20% year over year, whereas revenues from Toxicology ($149.5 million) and other sources ($83.5 million) increased 25% and 13% on a year-over-year basis, respectively. Diabetes business line accounted for $43.8 million of segment revenues.
Revenues from the Health Information Solutions segment were $131 million, up 4% year over year. Revenue growth was driven by coagulation monitoring programs in the residential setting.
Under the Health Information Solutions segment, revenues from Disease and Case Management ($53.1 million) dipped 5% and revenues from Wellness ($23.8 million) declined 3% year over year. Revenues from Women’s & Children’s Health ($30 million) and Patient Self-Testing Services ($24.1 million) were up 5% and 43% on a year-over-year basis, respectively.
Margin
Adjusted gross margin was 52.4% in the fourth quarter compared with 55.8% in the year-ago quarter. The same for the Professional Diagnostics segment was 54.4% compared with 60% a year ago. Adjusted gross margin for the Health Information Solutions segment was 44.2%, down from 45.3% a year ago.
Adjusted operating margin was 17.8% in the quarter compared with 21.7% in the prior year quarter. Adjusted operating margin for the Professional Diagnostics segment was 24% compared with 28.9% a year ago. Adjusted operating margin for the Health Information Solutions segment was (2%) compared with 2.9% in the year-ago quarter.