Trinity Biotech plc
), which has delivered eight positive earnings surprises in the
last ten quarters, is currently hovering around its 52-week high of
$12.76 hit on July 16. ADRs of this Ireland-based diagnostic test
kits and instrument company have been moving mostly upward since
mid-June based on second-quarter results, a growth-oriented
guidance and a 50% dividend.
With a year-to-date return of more than 26% and an attractive
valuation, this Zacks #1 Rank (Strong Buy) stock looks like a solid
On July 12, Trinity Biotech reported second-quarter earnings of 19
cents per ADR, which were in line with the Zacks Consensus Estimate
and up 11% from last year. Total revenues climbed 7% to $20.8
million, driven by impressive sales in both the clinical laboratory
and point-of-care divisions. The Zacks Consensus Estimate, however,
was $21.0 million.
Clinical laboratory revenues climbed 7.2% to $16.4 million, while
revenues from the point-of-care unit climbed 6.1% to $4.4 million.
Trinity Biotech repurchased more than 175,000 ADRs during the
second quarter of 2012 at an average cost of $11.49 per ADR. The
company's most recent dividend of 15 cents per ADR jumped 50% from
that paid in 2011.
Guidance Reflects Growth
The company expects to generate earnings of at least 80 cents per
ADR in 2012 on revenues of $86.0 million. This marks gains of 10.1%
in earnings and 10.4% in revenues from 2011.
Earnings Momentum on the Upswing
The Zacks Consensus Estimate for 2012 rose 3.9% to 79 cents per ADR
over the last 60 days. For 2013, the Zacks Consensus Estimate is
pegged at 91 cents per ADR, up 8.3% over the same time frame.
The Zacks Consensus Estimate for 2012 reflects a year-over-year
improvement of about 13.3%, while 2013 indicates a year-over-year
jump of 15.1%.
Valuation Looks Attractive Trinity Biotech's valuation looks
attractive. The company currently trades at a forward P/E of 15.9x,
reflecting a huge discount of 60.5% to the peer group average of
40.2x. Also, on a price-to-book basis, ADRs currently trade at
1.7x, a 52.8% discount to its peer group average of 3.6x.
ADRs of Trinity Biotech have displayed an upward trend since
mid-June, barring minor hiccups. The chart reveals that the stock
has been consistently trading above its 200-day and 50-day moving
average since early March.
Volume is fairly strong, averaging roughly 66K daily. Trinity
Biotech has constantly outperformed the S&P 500 since the
latter half of April 2012. The year-to-date return for the stock is
approximately 26.2%, compared with the S&P 500's return of
Headquartered in Bray, Ireland and founded in 1992, Trinity Biotech
focuses on developing, acquiring, manufacturing and marketing
medical diagnostic products. The company, which has a market cap of
$268.21 million, serves the clinical laboratory and point-of-care
divisions of the diagnostic market. The products are used for the
detection of infectious, autoimmune and sexually transmitted
diseases apart from diabetes and deficiencies related to the liver
and intestine. Furthermore, Trinity Biotech provides raw materials
to the life sciences industry. The company, which operates in more
than 75 countries across the globe, sells its products through its
own sales force in the US, UK, Germany and France. Moreover, it
operates through a network of international distributors and
TRINITY BIOTECH (TRIB): Free Stock Analysis
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