Luminex Retained at Neutral - Analyst Blog
December 18 2012 - 5:30AM
Zacks
Luminex
Corporation’s (LMNX) third quarter 2012 adjusted earnings
of $0.04 per share missed the Zacks Consensus Estimate of $0.07 per
share and the year-ago earnings of $0.05 per share.
Revenues increased 10% in the
reported quarter to $50 million, missing the Zacks Consensus
Estimate of $52 million. Top line growth was led by strong assay
sales.
Assay sales jumped 22% to $16.4
million, led by stronger demand for its advanced CE Marked
gastrointestinal pathogen panel (GPP) and NeoPlex4 assays. Revenues
from the System segment dropped 1% year over year to $8.6 million.
The company shipped 271 multiplexing analyzers (including 127
MAGPIX systems) in the quarter, resulting in total life-to-date
dispatches of 9,433 analyzers, up 12.7% year over year. Consumable
sales increased 8% to $12.9 million. Royalty and all other revenues
grew 3% and 10% to $7.7 million and $4.5 million, respectively.
Luminex revealed that the Defense
Threat Reduction Agency (“DTRA”) has awarded the company with $11.6
million to develop a portable diagnostic device enabled with quick
detection of bio-threat agents. The contract has a term period of
more than three and a half years.
Luminex accomplished the takeover
of U.S.-based diagnostic testing company, GenturaDx on July 11,
2012. The GenturaDx deal is in line with Luminex’s strategy of
pursuing acquisitions to drive growth. Its technology when combined
with Luminex’s MultiCode chemistry will enable the company to
develop user-friendly advanced products for its customers.
Luminex possesses an extensive
product portfolio and a strong pipeline of novel assays, which are
expected to support growth going ahead. The company is awaiting
Food and Drug Administration (FDA) approval for its GPP and
NeoPlex4 assays to drive future growth. The company may benefit
from its latest acquisitions if it maintains integration
synergies.
However, Luminex operates in a
highly competitive life sciences industry. The company competes
with Affymetrix (AFFX), Life Technologies
Corporation (LIFE) and Sequenom (SQNM),
among others. Moreover, sluggish growth in its core markets as well
as the ongoing European austerity measures are challenges faced by
Luminex. We are currently Neutral on the stock, which carries a
short-term Zacks #3 Rank (Hold).
AFFYMETRIX INC (AFFX): Free Stock Analysis Report
LIFE TECHNOLOGS (LIFE): Free Stock Analysis Report
LUMINEX CORP (LMNX): Free Stock Analysis Report
SEQUENOM INC (SQNM): Free Stock Analysis Report
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