On April 11, we have updated our research report on
). Luminex disappointed investors by posting an 11.8% fall in
adjusted net earnings to 15 cents per share and a 1.0% fall
in revenues to $55.2 million. Nevertheless, the company beat the
Zacks Consensus Estimate on earnings front by 8 cents per share
but missed the Zacks Consensus Estimate revenues by $0.8 million.
The decline in Luminex earnings can be attributable to lower
revenues and higher costs during the quarter. Poor assay revenues
led to lower revenues during the quarter.
For full year 2013, adjusted net earnings fell about 11.0% to
$16.9 million or 40 cents from $19.0 million or 45 cents in the
prior year. However, revenues in the year grew 5.4% to $213.4
million, which is in line with the company's own guidance.
Despite higher revenues, earnings in the year declined due to a
considerable (15.9%) rise in operating expenses during the year.
For 2014, Luminex expects revenues in the range of $225 to $240
million, reflecting an increase of 5 to 12% over 2013. The Zacks
Consensus Estimate of $231 million lies within the guided range.
Luminex is optimistic about the life science research market and
foresees continued favorable trends with respect to demand from
its clinical customers. In the assay business line, the company
expects growth in GPP, CF and PGx product lines apart from
continuing positive momentum in its LDT strategy. Luminex
believes that the presence of a direct molecular diagnostic sales
force will provide significant momentum in 2014.
We appreciate Luminex's broad product portfolio. The company is
renowned for its advanced xMAP and xTAG and MultiCode technology.
Besides, the company possesses a healthy pipeline and develops
several new assays
However, Luminex operates in the highly competitive life sciences
industry. The industry is characterized by rapid and continuous
technological innovation. Currently, it is facing significant
competitive headwinds in the respiratory market.
Currently, Luminex retains a Zacks Rank #3 (Hold). Some
better-ranked stocks in the medical instruments industry include
Delcath Systems, Inc.
Syneron Medical Ltd.
). Delcath Systems and Syneron Medical carry a Zacks Rank #1
(Strong Buy) while Teleflex holds a Zacks Rank #2 (Buy).
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