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Headquartered in Austin, TX, Luminex Corporation reported earnings of 27 cents per share in the first quarter of 2017, surpassing the Zacks Consensus Estimate of adjusted earnings of 8 cents per share by a massive 237.5%. Earnings also increased 3.87% year over year.
Revenues in the quarter increased almost 23.5% year over year to $77.9 million, ahead of the Zacks Consensus Estimate of $74 million. About 16% of the year-over-year growth was driven by the acquisition of Nanosphere last year while the remaining was organic.
Meanwhile, this Zacks Rank #3 (Hold) stock has a long-term expected earnings growth rate of 16.25%.
Quarter Highlights
The company saw 10% growth in partner business and 39% in molecular diagnostic. Overall, growth was backed by the automated sample to answer technology, which grew almost 70% year over year on an adjusted basis.
Luminex Corporation Price, Consensus and EPS Surprise
As per the company’s partnership with LabCorp, it extended its commitment to purchase the CF (CYSTIC FIBROSIS) product at least to the end of 2017 that is three years after the original announcement.
Quarter in Details
System sales jumped 2.2% on a year-over-year basis to $8.5 million. Notably, the company shipped 242 multiplexing analyzers in the reported quarter that led to higher system revenues. Here we note that system sales included MAGPIX systems, LX systems, FLEXMAP 3D systems.
Assay revenues grew 38.3% year over year out of which 3% was organic. Sales of the infectious disease assay were approximately 82% of total assay sales in the quarter while genetic testing assays contributed 18%.
Coming to royalty revenues, sales at this segment increased roughly 0.81% on a year-over-year basis to around $11.6 million.
Consumables sales rose 29.8% to $15.4 million, primarily attributable to strong demand across the partner base of the company.
Margins
Gross margin was 67.9% in the reported quarter, highlighting a contraction of 328 basis points (bps) year over year. However, gross margin exceeded management’s expectations of low to mid-60s, courtesy of a few factors like improvement in gross margin of Verigene-related revenues and favorable product mix.
Operating expenses rose 17.5% on a year-over-year basis, largely due to the incorporation of Nanosphere.
In the first quarter, absolute operating margin was $18 million, a record high for the company. This can be attributed to healthy revenue growth, improved gross margin and continued focus on control of operating expense.
Financial Condition
The company ended the first quarter with approximately $86.5 million in cash and investments, as compared with $93.5 million at the end of 2016.
Guidance
Luminex revised its 2017 annual revenue guidance to the band of $300 million to $310 million, reflecting an improvement from the $295–$305 million band.
The company projects second-quarter 2017 revenues in the range of $74 million to $76 million.
Hologic gained 33.47% in the last one year, in comparison to the S&P 500’s 14.53%. The company has a stellar four-quarter average earnings surprise of over 4.16%.
Baxter International rose around 24.38% in the last one year, in comparison to the S&P 500. It has a four-quarter average earnings surprise of 17.14%.
Progenics Pharmaceuticals gained 51.74% in the past one year, better than the S&P 500 mark. It has a four-quarter average earnings surprise of 8.45%.
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Luminex (LMNX) Tops Q1 Earnings, Revenue Guidance Raised
Headquartered in Austin, TX, Luminex Corporation reported earnings of 27 cents per share in the first quarter of 2017, surpassing the Zacks Consensus Estimate of adjusted earnings of 8 cents per share by a massive 237.5%. Earnings also increased 3.87% year over year.
Revenues in the quarter increased almost 23.5% year over year to $77.9 million, ahead of the Zacks Consensus Estimate of $74 million. About 16% of the year-over-year growth was driven by the acquisition of Nanosphere last year while the remaining was organic.
Meanwhile, this Zacks Rank #3 (Hold) stock has a long-term expected earnings growth rate of 16.25%.
Quarter Highlights
The company saw 10% growth in partner business and 39% in molecular diagnostic. Overall, growth was backed by the automated sample to answer technology, which grew almost 70% year over year on an adjusted basis.
Luminex Corporation Price, Consensus and EPS Surprise
Luminex Corporation Price, Consensus and EPS Surprise | Luminex Corporation Quote
As per the company’s partnership with LabCorp, it extended its commitment to purchase the CF (CYSTIC FIBROSIS) product at least to the end of 2017 that is three years after the original announcement.
Quarter in Details
System sales jumped 2.2% on a year-over-year basis to $8.5 million. Notably, the company shipped 242 multiplexing analyzers in the reported quarter that led to higher system revenues. Here we note that system sales included MAGPIX systems, LX systems, FLEXMAP 3D systems.
Assay revenues grew 38.3% year over year out of which 3% was organic. Sales of the infectious disease assay were approximately 82% of total assay sales in the quarter while genetic testing assays contributed 18%.
Coming to royalty revenues, sales at this segment increased roughly 0.81% on a year-over-year basis to around $11.6 million.
Consumables sales rose 29.8% to $15.4 million, primarily attributable to strong demand across the partner base of the company.
Margins
Gross margin was 67.9% in the reported quarter, highlighting a contraction of 328 basis points (bps) year over year. However, gross margin exceeded management’s expectations of low to mid-60s, courtesy of a few factors like improvement in gross margin of Verigene-related revenues and favorable product mix.
Operating expenses rose 17.5% on a year-over-year basis, largely due to the incorporation of Nanosphere.
In the first quarter, absolute operating margin was $18 million, a record high for the company. This can be attributed to healthy revenue growth, improved gross margin and continued focus on control of operating expense.
Financial Condition
The company ended the first quarter with approximately $86.5 million in cash and investments, as compared with $93.5 million at the end of 2016.
Guidance
Luminex revised its 2017 annual revenue guidance to the band of $300 million to $310 million, reflecting an improvement from the $295–$305 million band.
The company projects second-quarter 2017 revenues in the range of $74 million to $76 million.
Stocks to Consider
Better-ranked medical stocks include Hologic, Inc. (HOLX - Free Report) , Baxter International Inc. (BAX - Free Report) and Progenics Pharmaceuticals, Inc. . Hologic, Baxter International and Progenics Pharmaceuticals sport a Zacks Rank 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Hologic gained 33.47% in the last one year, in comparison to the S&P 500’s 14.53%. The company has a stellar four-quarter average earnings surprise of over 4.16%.
Baxter International rose around 24.38% in the last one year, in comparison to the S&P 500. It has a four-quarter average earnings surprise of 17.14%.
Progenics Pharmaceuticals gained 51.74% in the past one year, better than the S&P 500 mark. It has a four-quarter average earnings surprise of 8.45%.
5 Trades Could Profit "Big-League" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>