Shares of Santa Clara, Calif.-based biomedical company
) reached new 52-week high of $8.84 in mid-day trading last
Friday. Shares of the company closed at $8.73 on the same day,
representing a whopping one-year return of 164.5%.
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AFFX has a market cap of $627.8 million. Average volume of shares
traded over the last three months stood at approximately
Shares of Affymetrix started escalating following its promising
third quarter results on Oct 30. The company 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 #2 (Buy). Other
better-ranked stocks in the biomed/gene gene industry include
InSite Vision Incorporated
Vanda Pharmaceuticals, Inc.
). All of them carry a Zacks Rank #1 (Strong Buy).