Affymetrix Rise on Turnaround 2Q Earnings - Analyst Blog
August 07 2013 - 11:25AM
Zacks
Shares of Affymetrix Inc.’s (AFFX) rose 6.4% to
$5.00 yesterday following the release of its promising 2013-second
quarter results on Jul 31. The company reported its first earnings
since the first quarter of 2011. The stock price is very close to
the 52-week high of $5.26 on Jul 12.
Affymetrix posted adjusted earnings per share of 4 cents in the
quarter in sharp contrast to the year-ago adjusted loss of 13
cents. This reflected a whopping 500% earnings surprise compared
with the Zacks Consensus Estimate of a loss of a penny.
Thanks to AFFX’s strategic restructuring plans and its acquisition
of eBioscience in Jun 2012 that has opened new avenues for the
company and turned its focus away from the beleaguered Gene
Expression business.
Revenues increased 19.7% year over year to $79.5 million (including
the eBioscience acquisition), almost in line with the Zacks
Consensus Estimate. eBioscience revenues increased manifold to
$18.8 million from $1.4 million in the year-ago period.
During the quarter, Affymetrix launched a new product, Axiom 384HT
Genotyping Format, a high-throughput platform capable of genotyping
384 samples simultaneously and run on the GeneTitan Instrument.
We are impressed with Affymetrix’s strong second-quarter results,
following a dismal first quarter. We believe that AFFX is ready for
a turnaround due to management's strategy to transform it into a
company with a broad reach in the high-growth markets for
translational medicine, molecular diagnostics and applied markets.
Despite a tight U.S. academic funding environment, AFFX’s new
products and strategic agreements should propel growth in the
company.
Currently, AFFX has a Zacks Rank #1 (Strong Buy). Other companies
like Biogen Idec (BIIB), Gilead
Sciences (GILD) and Actelion (ALIOF), all
carrying a Zacks Rank #1 (Strong Buy), are also expected to do well
in the Medical-Biomed/Gene industry.
AFFYMETRIX INC (AFFX): Free Stock Analysis Report
ACTELION LTD (ALIOF): Get Free Report
BIOGEN IDEC INC (BIIB): Free Stock Analysis Report
GILEAD SCIENCES (GILD): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Affymetrix (NASDAQ:AFFX)
Historical Stock Chart
From Sep 2024 to Oct 2024
Affymetrix (NASDAQ:AFFX)
Historical Stock Chart
From Oct 2023 to Oct 2024
Real-Time news about Affymetrix, Inc. (NASDAQ): 0 recent articles
More Affymetrix News Articles