Meridian Bioscience reaffirms fiscal 2008 outlook

Still, the company expects continued weakness in its life sciences unit because of a customer's cutbacks earlier this year. The unit was the only section of the company to experience a profit decline in the fiscal third quarter, causing overall revenue to miss Wall Street forecasts. But the company matched profit forecasts of 19 cents per share.

Shares fell $3.04, or 10.6 percent, to $25.70 in midday trading. The stock has traded between $21.41 and $37 over the last 52 weeks.

Chief Executive John A. Kraeutler, in an interview, said the company has maintained since the first quarter that its life sciences unit could remain weak. Still, the company reaffirmed its forecast for profit between 72 cents and 75 cents per share, on sales in a range of $140 million to $142 million in fiscal 2008, which ends Sept. 30.

Analysts polled by Thomson Financial, on average, expect profit of 74 cents per share on revenue of $141.1 million.

"As we look toward the next several quarters, we are encouraged by the breadth of our business drivers and the potential from our new product pipeline," Kraeutler said in a statement Thursday morning.

Despite the shortfall within the life-sciences unit, the third-quarter report was mostly positive, said Elliott L. Schlang, managing director of the institutional research boutique Great Lakes Review.

"As far as we're concerned, they came in pretty much inline with our expectations," he said, adding any fallout from the life-sciences unit shortfall should be mostly negated by the company's reaffirmed guidance.

Meanwhile, Meridian said it expects double-digit sales and profit growth in fiscal 2009. Initial guidance for the next fiscal year will be announced in mid-August, the company said. The board could also recommend a dividend raise.

"As we look forward to fiscal 2009, the outlook appears very favorable," William J. Motto, executive chairman of the board, said in statement. "We do not expect the unsettled credit market, economic conditions, or political environment to have a negative impact on our business."