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Luminex (LMNX) Beats Q1 Earnings & Revenues, Guides Up

Luminex Corporation LMNX reported first-quarter 2016 adjusted earnings (including stock-based compensation) of 27 cents per share, which comfortably surpassed the Zacks Consensus Estimate of 13 cents.

Luminex Corporation - Earnings Surprise | FindTheBest

Adjusted earnings surged 36.5% on a year-over-year basis driven by strong top-line growth and operating margin expansion.

Revenues increased 9.1% year over year to almost $63 million, which was slightly better than the Zacks Consensus Estimate of $61 million. The year-over-year improvement may be attributed to better system sales and a stellar performance by the company's assay product portfolio.

Adjusted gross margin expanded 150 basis points (bps) on a year-over-year basis to 71.1%, driven by favorable product mix.

Research & development (R&D) expenses, as a percentage of revenues, declined 10 basis points (bps) to 17.5%. Selling, general and administrative (SG&A) expenses decreased 140 bps to 32.3% in the reported quarter.

Adjusted operating margin expanded 320 bps on a year-over-year basis to 22.4%, driven by higher revenues as well as stringent cost control.

Segment Details

System sales jumped 39.5% on a year-over-year basis to $8.3 million. Royalty revenues increased 7.2% on a year-over-year basis to $11.5 million.

Consumables sales soared 19.7% to $11.9 million. Luminex's partner revenues grew 18% year over year, far ahead of its annual growth target range of 6% to 9%, primarily driven by robust demand for the company's products in the life science markets.

Assay revenues increased 6.3% to $27 million, reflecting the successful execution of the company's molecular diagnostic strategy. Infectious disease assay sales comprised approximately 72% of the total assay sales in the quarter, with genetic testing assays representing 28%.

Molecular diagnostic business generated approximately $28 million in revenues driven by 20% growth in Luminex's infectious disease test portfolio.

In the reported quarter, Luminex sold 255 multiplexing analyzers.

Guidance

Luminex now expects full-year 2016 revenues in the range of $247--$255 million, up from the previous range of $245-$255 million. Second-quarter 2016 revenues are expected between $60 million and $62 million.

Luminex expects consumables revenues to increase in the mid-single digit range for 2016. Royalties are expected to grow in the low single-digits range.

Management at Luminex expects assay revenue growth in the mid single-digits range in 2016. The company assumes that LabCorp CF will remain its customer throughout 2016.

Luminex continues to expect a couple of million dollar contribution from ARIES in 2016.

Zacks Rank & Key Picks

Currently, Luminex carries a Zacks Rank #3 (Hold).

Better-ranked stocks in the medical space are Edwards Lifesciences EW , IRadimed Corporation IRMD and Abiomed ABMD . While Edwards Lifesciences and IRadimed sport a Zacks Rank #1 (Strong Buy), Abiomed carries a Zacks Rank #2 (Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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