) fourth-quarter 2012 adjusted earnings of 12 cents per share (up
9% year over year) beat the Zacks Consensus Estimate of 10 cents
per share. Adjusted earnings exclude one-time charges such as the
acquisition-related charges of GenturaDx as well as costs
associated with a study.
ABIOMED INC (ABMD): Free Stock Analysis
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LUMINEX CORP (LMNX): Free Stock Analysis
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Profits generated were $4.3 million, up 23.5% from the prior-year
quarter due to gross margin expansion.
For the full year, adjusted earnings of 39 cents a share topped
the Zacks Consensus Estimate of 31 cents but were lower than the
year-ago earnings of 45 cents per share. Profits (as reported)
declined 14.5% year over year to $12.4 million (or 30 cents a
Revenues surged 16% in the reported quarter to $55.5 million,
marginally surpassing the Zacks Consensus Estimate of $55
million. Revenues were driven by solid momentum in the assay and
consumables businesses. For the fiscal, sales increased 10% year
over year to $202.6 million, beating the Zacks Consensus Estimate
of $201 million.
For the fourth quarter, Assay sales increased 45% to $23.8
million, led by strong sales in the infectious disease product
Revenues from the System segment plunged 31.6% year over year to
$7.2 million, mainly due to lesser number of multiplexing systems
placed and a transition from the LX system to the MAGPIX system,
which has a lower price point. The company shipped 226
multiplexing analyzers during the quarter, resulting in total
life-to-date dispatches of 9,659 analyzers, up 2.4% year over
On a positive note, Consumable sales increased 23% to $12.4
million. Royalty and All Other revenues grew 5.6% and 22.1% to
$7.5 million and $4.7 million, respectively.
Gross margin in fourth quarter 2012 was 71% versus 67.9% in the
prior-year quarter, reflecting a strong mix shift toward higher
margin products. Operating expenses were up 12.3% to $32.1
million due to costs associated with the acquisition and
integration of GenturaDx. However, operating margin increased to
13.2% from 8.1% in the prior-year quarter.
Selling, general and administrative expenses (as a percentage of
sales) remained approximately flat year over year at 36.2%.
Research and development expenses were 19.8% compared with 20.7%
in the year-ago quarter.
Luminex ended fourth quarter 2012 with cash and cash equivalents
(including short-term investments) of $56.4 million, down 44%
year over year. Long-term debt was $1.7 million, down 34.6%.
Moving ahead, Luminex expects revenues for fiscal 2013 in a range
of $220 million to $230 million, up 9%-14% year over year.
The current Zacks Consensus Estimate is pegged at $227 million.
Luminex possesses an extensive product portfolio and a healthy
pipeline of novel assays, which are expected to support growth
going ahead. In Jan 2013, the company received the approval from
the U.S. Food and Drug Administration (FDA) for its xTAG
Gastrointestinal Pathogen Panel (GPP). We believe that the assay
will drive long-term growth for the company based on its unique
features along with an estimated market opportunity of $150
Moreover, Luminex is developing innovative platforms by combining
resources from its latest acquisitions. The company's initiative
to establish a direct sales force for its molecular diagnostics
customers will likely improve operating efficiency.
However, Luminex operates in a highly competitive life sciences
industry. Sluggish growth in its core markets as well as the
ongoing global austerity measures are challenges faced by the
The stock carries a Zacks Rank #3 (Hold). Medical instrument
companies, such as
Cantel Medical Corp.
) with Zacks Rank #1 (Strong Buy), are expected to do well.