Luminex Corp.

Luminex Corp. (LMNX - Analyst Report) is fresh off the heels of a great quarter in which the company swung into profitability from last year. The next-year estimate is extremely bullish and the company's share price is rallying.

Company Description

Luminex Corp develops and manufactures proprietary biological testing technologies and products for the life sciences industry. The company has a market cap of $886 million.

Third-Quarter Results

Shares of LMNX have been rallying since the company reported strong third-quarter results on Nov 7. Revenue jumped to $29 million from $19.3 million last year. Income increased to $3.2 million from a loss of $1.9 million. This produced earnings of 8 cents per share, far ahead of analyst estimates of 1 cent.

Luminex said that its results benefited from partnerships with Genzyme Corp. and Becton, Dickinson and Co. in developing diagnostic tests. The results also included a $1.8 million stock compensation charge and a $600,000 hit related to the amortization of intangible assets.

Internationl Growth

On Nov 20, Luminx announced that it had reached an agreement with Mingyuan Medicare Development Co, a Chinese-based medical products distributor, to serve as the exclusive distributor of its products in both China and Hong Kong. Luminex noted that 20 million babies are born in China every and that the Chinese government mandates testing in order to detect genetic disorders.

Guidance and Estimates

After the solid performance, Luminex went ahead and boosted its full-year revenue guidance to between $102 million and $107 million, up from the previous $95 million to $105 million.

The analyst community is bullish on the company as well, with the next-year estimate pegged at 32 cents per share, a whopping 359% earnings growth projection.

The Chart

As previously mentioned, shares of LMNX have been rallying since news of the good quarter hit the street, jumping from $12.50 to a recent high above $22. The next-year estimate is bullish, but this is an expensive stock, so Luminex will need to deliver more impressive growth in order to drive shares higher. Take a look at the chart below.