Physicians Formula shares sink on Q2 outlook
Physicians Formula Holdings Inc.’s (Nasdaq: FACE) stock sank after the closing bell today after the Azusa, Calif.-based company released its first quarter financial results and second quarter outlook.
For the three months ended March 31, the cosmetics firm posted net income of $0.30 on revenue of $35.7 million. Net income included $0.03 per share of non-cash compensation expense after tax and $0.01 per share of secondary offering costs after tax.
Excluding these items, adjusted net income per diluted common share would have been $0.34 for the first quarter of 2007.
Three analysts polled by Thomson First Call had estimated earnings per share of $0.27 on revenue of $34 million.
Looking ahead, though, the company predicted it would report a net loss between $0.04 and $0.01 on revenue of between $24.5 million to $25.5 million for the second quarter.
Analysts were expecting earnings per share of $0.18 on revenue of $28.6 million.
As of 5:49 PM ET, Physicians Formula’s shares were down $2.22, or 10.1%, to $19.73 in after-hours trading. The stock has traded as low as $17.25 (on Nov. 17) and as high as $23.25 (on Feb. 22) in the past year.
Volume was unusually heavy – at 353,064 shares, more than twice the average three-month daily volume of 174,342 shares.
Physicians Formula CEO Ingrid Jackel said the company achieved 26% growth in retail sales in the face category and 11% growth in retail sales in the eye category for the 52 weeks ended March 24.
On April 25, Physicians Formula completed a secondary offering of 5 million shares of its common stock by certain selling stockholders. The company did not receive any proceeds from the sale of the shares but agreed to pay the expenses of the offering, which resulted in a $0.01 per share impact on net income per diluted common share for the first quarter of 2007 and is expected to result in a cumulative $0.04 per share impact on net income per diluted common share for 2007.
