Abaxis Sees Q3 Revenues Above View

(RTTNews) - Abaxis Inc. (ABAX) said it expects revenues in the third fiscal quarter of fiscal 2018 in a range of $59.0 million to $60.0 million, an increase of 12% to 14%, over last year's comparable quarter. Analysts polled by Thomson Reuters expect the company to report revenues of $56.42 million for the third-quarter. Analysts' estimates typically exclude special items.

In addition, Abaxis expects operating income before income tax provision in the third fiscal quarter of fiscal 2018 of $9.0 million to $10.0 million compared to $10.8 million in last year's third quarter.

Abaxis expects its gross margin for the third fiscal quarter of fiscal 2018 to be between 53.5% and 54.0%.

Following the recently enacted Tax Cuts and Jobs Act ("TCJA") on December 22, 2017, Abaxis expects its effective income tax rate to decline by 200 to 300 basis points in fiscal 2018 compared to fiscal 2017, excluding a one-time non-cash charge. In the third quarter of fiscal 2018, Abaxis expects its effective income tax rate to be approximately 27%, excluding a one-time non-cash charge described below. Abaxis estimates its effective income tax rate in fiscal 2019 will be lower by 1,000 to 1,200 basis points compared to fiscal 2017.

During the third quarter of fiscal 2018, Abaxis expects to record a one-time non-cash charge of approximately $2.5 million to $3.5 million to its income statement as a result of TCJA. The charge is due to a reduction in deferred tax assets as a result of the reduction of the federal tax rate from 35% to 21% effective January 1, 2018. The actual impact of the TCJA on the Company's effective income tax rates may differ from the estimates above, due to changes in interpretations and assumptions made by the Company.

Abaxis plans to announce its detailed earnings results on January 25, 2018.