) is scheduled to report its fourth-quarter and fiscal 2012
results on Monday, Feb 4, 2013, after market closes. Let's see
how things are shaping up before the announcement.
Growth Factors This Past Quarter
Life Technology's performance has been thwarted by a sustained
slowdown in government and academic research funding. Although
the company does not expect the scenario to worsen in the near
future, yet this global biotechnology company is repositioning
for a slower growth environment by lowering the cost structure
and increasing focus on R&D initiatives. Moreover, Life
Technologies has consistently adopted a conservative outlook and
expects the overall growth of the European region to be impacted
by macroeconomic pressures through continued reductions in
discretionary spending. Further worsening of the economic
scenario in Europe might adversely impact the company.
However, over the last two years, the company has been focused
on creating an optimal portfolio of products through innovation
and acquisition, the latest being Ion Torrent. We are also
encouraged by Life's strategy to strengthen its presence in high
growth geographic markets such as Latin America, the Middle East,
China and India. Over the next few years, Life's focus on
developing industry-leading franchises in high-growth technology
areas, applied markets and emerging geographies will be the key
drivers of long-term growth.
Our proven model does not conclusively show that Life
Technologies is likely to beat earnings this quarter. This is
because a stock needs to have both a positive Earnings ESP (read:
Zacks Earnings ESP: A Better Method
) and a Zacks Rank of #1, 2 or 3 for this to happen. This is not
the case here as you will see below.
Zacks Earnings ESP of -0.90%
: The Most Accurate Estimate stands at $1.10, while the Zacks
Consensus Estimate is pegged at $1.11. This comes to a difference
Zacks Rank #3 (Hold)
: Life Technologies' Zacks Rank #3 (Hold) lowers the predictive
power of ESP because the Zacks Rank #3 when combined with a
negative ESP makes surprise prediction difficult. The sell rated
stocks (#4 and #5) should never be considered going into an
Other Stocks to Consider
Here are some other companies you may want to consider as our
model shows that these have the right ingredients to post an
earnings beat this quarter:
, Earnings ESP of +2.56% and a Zacks Rank #1 (Strong Buy)
Becton, Dickinson and Company
), Earnings ESP of +3.25% and a Zacks Rank #2 (Buy)
Henry Schein Inc.
), Earnings ESP of +0.83% and a Zacks Rank #3 (Hold).
BECTON DICKINSO (BDX): Free Stock Analysis
CYBERONICS INC (CYBX): Free Stock Analysis
HENRY SCHEIN IN (HSIC): Free Stock Analysis
LIFE TECHNOLOGS (LIFE): Free Stock Analysis
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