On Feb 7, Zacks Investment Research downgraded
) to a Zacks Rank #3 (Hold).
Why the Downgrade?
On Feb 5, Affymetrix reported fourth-quarter 2013 adjusted
earnings of $2.2 million or 2 cents per share, rebounding from a
loss of $1.3 million or 2 cents a share in the same quarter of
2012. However, earnings trailed the Zacks Consensus Estimate of 7
cents per share.
For full-year 2013, Affymetrix posted adjusted earnings of $7.4
million or 10 cents per share which compared favorably with a
loss of $15 million or 21 cents per share in 2012. The full-year
figure, however, lagged the Zacks Consensus Estimate of 14 cents.
On the other hand, revenues in the reported quarter were $92.6
million, beating the Zacks Consensus Estimate of $86 million.
Revenues in 2013 were $330.4 million, also surpassing the Zacks
Consensus Estimate of $323 million.
For full-year 2014, Affymetrix expects revenues worth of $335
million, lower than the Zacks Consensus Estimate of $336 million.
The Zacks Consensus Estimate for earnings for 2014 decreased
17.6% to 14 cents per share over the last 30 days. Affymetrix has
witnessed four downward estimate revisions in the past 30 days,
while three upward revisions took place over the same time span.
The stiff competitive market for gene expression and genotyping
remains a cause of concern for Affymetrix. Additionally, with
customers (pharmaceutical/biotech companies and research
institutions) dependent on government funding, revenues at
Affymetrix are likely to be affected due to a volatile funding
Other Stocks to Consider
Other better-ranked stocks in the biomedical/gene industry
Biogen Idec Inc.
) each carrying a Zacks Rank #1(Strong Buy).
AFFYMETRIX INC (AFFX): Free Stock Analysis
ACTELION LTD (ALIOF): Get Free Report
BIOGEN IDEC INC (BIIB): Free Stock Analysis
CAMBREX CORP (CBM): Free Stock Analysis
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