On Dec 2, we retained our Outperform recommendation on
). We are encouraged by the company's recovery in generating
earnings and appreciate its successful restructuring plan that
focuses on high growth markets.
AFFYMETRIX INC (AFFX): Free Stock Analysis
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On Oct 30, AFFX 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.
Following the release of third quarter results, the Zacks
Consensus Estimate for 2013 earnings surged 37.5% to 11 cents per
share. The Zacks Consensus Estimate for 2014 earnings rose 6.7%
to 16 cents per share. Currently, Affymetrix has a Zacks Rank #2
AFFX is a major provider of microarray technologies primarily
used in the field of genetic research. The company has expertise
in GeneChip Expression monitoring arrays, which are used to
identify correlations between genes, determine their biological
functions, and identify patterns that enable more accurate
We are impressed with Affymetrix's restructuring initiative which
helped it post earnings for the first time in the 2013-second
quarter and beyond since the first quarter of 2011. At the
beginning of 2013, the company implemented a corporate
restructuring plan intending to accelerate toward profitability.
Management expects the corporate restructuring program to result
in annualized savings of approximately $25 million based on 2013
run rates, of which $5 million is expected to be in cost of goods
Other Stocks to Look For
Other players that are currently performing well in the
biomed/gene industry include
AMAG Pharmaceuticals, Inc.
). All of them carry a Zacks Rank #1 (Strong Buy).