Affymetrix's Revenue Guidance Tops Ests - Analyst Blog
January 08 2014 - 1:50PM
Zacks
Shares of Santa Clara, Calif.-based biomedical company
Affymetrix Inc. (AFFX) spiked 11.5% following the
release of its 2013-fourth quarter revenue guidance that exceeded
estimates. Shares of the company closed at $8.81, represented a
whopping one-year return of nearly 160.0%.
AFFX revealed that it anticipates fourth quarter revenues of $91.0
million, including a one-time licensing payment of $5.3 million
from a diagnostic partner. For fiscal 2013, the company expects
total revenue of roughly $329.0 million.
Both the quarterly and annual estimates surpassed the Zacks
Consensus Estimate of $85 million and $322 million, respectively.
The quarterly sales also reflect a 7.8% rise from the year-ago
level of $84.4 million.
Affymetrix posted adjusted earnings per share of 5 cents in the
third quarter of 2013, surpassing the Zacks Consensus Estimate of 2
cents and rebounding from the year-ago adjusted loss of 3
cents.
Revenues inched up 0.9% to $80.4 million, beating the Zacks
Consensus Estimate of $79 million. Product revenues improved 2.9%
to $74.8 million, while Service and other revenues dropped 18.8% to
$5.6 million in the reported quarter.
Gross margin surged 300 basis points (bps) to 55% from 52% in the
third quarter of 2012. However, on an adjusted basis, gross margin
increased 100 bps to 61%.
We believe that AFFX is ready for a turn around and the worst days
are over for the company. In the face of declining demand for
Affymetrix’ flagship GeneChip Expression products, management
strategy to transform AFFX into a company with a broad reach in the
high-growth markets for translational medicine, molecular
diagnostics and applied markets is indeed encouraging.
Currently, AFFX retains a Zacks Rank #1 (Strong Buy). Other players
in the biomed/gene industry, which also look attractive at present,
include Alimera Sciences, Inc. (ALIM),
Genomic Health Inc. (GHDX), and Horizon
Pharma, Inc. (HZNP). All of them carry a Zacks Rank #1
(Strong Buy).
AFFYMETRIX INC (AFFX): Free Stock Analysis Report
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GENOMIC HEALTH (GHDX): Free Stock Analysis Report
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