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LDR1Q earnings

Landauer Inc. reports increase in revenue, despite earnings drop

by Katharine Lau
Feb 02, 2010

Landauer Inc., a provider of personal and environmental radiation exposure monitoring services, reported a first quarter 2010 decrease in earnings despite an increase in sales. 

The Glenwood-based company earned $5.1 million, or 55 cents per diluted share, for the quarter ended Dec. 31, a 16.5 percent decrease from the year-earlier quarter of $6.1 million, or 66 cents per diluted share.  The company failed to meet analysts’ quarterly earnings estimates of 68 cents per diluted share, as compiled by Zacks Investment Research Inc.

First quarter results were affected by one-time costs totaling $1.5 million resulted from the acquisitions of Global Physics Solutions Inc. and Gammadata Matteknik AB in November.

Revenues  totaled $27.2 million for the first quarter, up 21.4 percent from $22.4 million in the year-earlier quarter. 

“[The acquisitions] are both kind of performing on plan with the expectations after two months,” said Jon Singer, Landauer chief financial officer, in an earnings teleconference Tuesday.  “If you look at the contribution, the GDM business has a bit of seasonality to it.  [Global Physics Solutions] we expect to see progressive growth quarter-to-quarter as we progress through the year.” 

Robert W. Baird & Co. analyst Richard Eastman wrote in a analyst’s note Wednesday that Landauer’s first quarter results were “largely in line with expectations.” 

“[Landauer] appears well-positioned to benefit from growth in the $1 billion medical physics market with the recent acquisition of Global Physics Solutions,” Eastman wrote.  He maintained his “outperform” rating for the company. 

Landauer predicts a “net income increase in the range of 4 to 8 percent,” excluding the impact of acquisition-related transaction and reorganization costs in the full year 2010.  Analysts estimate diluted earnings per share to be $2.84 for the full year 2010, as compiled by Bloomberg LP.  The company earned $2.49 diluted earnings per share for the full year ended Sept. 30. 

At midday Wednesday Landauer shares traded at $57.84, down 83 cents or 1.41 percent from Tuesday’s closing price of $58.77.