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Luminex (LMNX) Declines 6.6% as Q3 Earnings Miss Estimates
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Shares of Luminex Corporation declined 6.6% on Nov 5, following its release of third-quarter 2020 results.
The company reported third-quarter 2020 earnings per share (EPS) of 4 cents, missing the Zacks Consensus Estimate by 80.9%. The company had reported loss per share of 12 cents in the year-ago period.
Revenues came in at $106.1 million, missing the Zacks Consensus Estimate by a marginal 0.2%. However, the top line improved 34.8% on a year-over-year basis.
Total sample-to-answer molecular diagnostics revenues grew 98% from the prior-year quarter.
Segmental Analysis
System Sales
Revenues at this segment totaled $19.5 million, up 28% from the year-ago quarter.
Consumable Sales
This segment accounted for $11.8 million of revenues, down 12% year over year.
Royalty Revenues
Royalty revenues totaled $9.6 million, down 26% on a year-over-year basis.
Assay Revenues
This segment reported revenues worth $55.6 million, up 89% on a year-over-year basis.
Service Revenues
Revenues in the segment amounted to $5.9 million, up 11% from the year-ago quarter.
Other
Other revenues came in at $3.5 million, up 56% from the prior-year quarter.
Financial Update
The company exited third quarter with cash and cash equivalents of $308.5 million, up from $291.7 million on a sequential basis.
Cumulative net cash provided by operating activities at the end of the third quarter of 2020 came in at $39 million, compared with $8.2 million in the year-ago period.
Margins
Gross profit in the reported quarter was $63.4 million, up 51.5% year over year. Gross margin was 59.8%, expanding 658 basis points (bps).
The company reported adjusted operating profit of $14.4 million against the year-ago quarter’s adjusted operating loss of $2.9 million.
Luminex Corporation Price, Consensus and EPS Surprise
Luminex projects 2020 revenues at $410 million, suggesting growth of 23% from the figure reported in 2019. The Zacks Consensus estimate for the same is pegged at $421.9 million.
Revenues for 2021 are estimated by the company to be at or above $475 million. The Zacks Consensus Estimate for the same is pegged at $451.5 million.
Wrapping Up
Luminex exited the third quarter on a weak note. Revenues at Consumables and Royalty operating segments declined in the quarter. However, the company continues to gain from its flagship ARIES and VERIGENE platforms that currently have a strong customer base. Also, the company witnessed total sample-to-answer molecular diagnostics revenue growth in the quarter. Expansion of gross margin is a positive. Notably the FDA Emergency Use Authorization (EUA) for the ARIES SARS-CoV-2 Assay continues to instill optimism.
Zacks Rank and Key Picks
Currently, Luminex carries a Zacks Rank #4 (Sell).
Thermo Fisher reported third-quarter 2020 adjusted EPS of $5.63, beating the Zacks Consensus Estimate by 28.8%. Revenues of $8.52 billion surpassed the consensus mark by 10%.
Align Technology reported third-quarter 2020 adjusted EPS of $2.25, which surpassed the Zacks Consensus Estimate by 281.4%. Revenues of $734.1 million outpaced the consensus mark by 38%.
AngioDynamics reported first-quarter fiscal 2021 adjusted EPS of 2 cents against the Zacks Consensus Estimate of a loss per share of 6 cents. Revenues of $70.2 million beat the consensus mark by 6.9%.
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Luminex (LMNX) Declines 6.6% as Q3 Earnings Miss Estimates
Shares of Luminex Corporation declined 6.6% on Nov 5, following its release of third-quarter 2020 results.
The company reported third-quarter 2020 earnings per share (EPS) of 4 cents, missing the Zacks Consensus Estimate by 80.9%. The company had reported loss per share of 12 cents in the year-ago period.
Revenues came in at $106.1 million, missing the Zacks Consensus Estimate by a marginal 0.2%. However, the top line improved 34.8% on a year-over-year basis.
Total sample-to-answer molecular diagnostics revenues grew 98% from the prior-year quarter.
Segmental Analysis
System Sales
Revenues at this segment totaled $19.5 million, up 28% from the year-ago quarter.
Consumable Sales
This segment accounted for $11.8 million of revenues, down 12% year over year.
Royalty Revenues
Royalty revenues totaled $9.6 million, down 26% on a year-over-year basis.
Assay Revenues
This segment reported revenues worth $55.6 million, up 89% on a year-over-year basis.
Service Revenues
Revenues in the segment amounted to $5.9 million, up 11% from the year-ago quarter.
Other
Other revenues came in at $3.5 million, up 56% from the prior-year quarter.
Financial Update
The company exited third quarter with cash and cash equivalents of $308.5 million, up from $291.7 million on a sequential basis.
Cumulative net cash provided by operating activities at the end of the third quarter of 2020 came in at $39 million, compared with $8.2 million in the year-ago period.
Margins
Gross profit in the reported quarter was $63.4 million, up 51.5% year over year. Gross margin was 59.8%, expanding 658 basis points (bps).
The company reported adjusted operating profit of $14.4 million against the year-ago quarter’s adjusted operating loss of $2.9 million.
Luminex Corporation Price, Consensus and EPS Surprise
Luminex Corporation price-consensus-eps-surprise-chart | Luminex Corporation Quote
Guidance
Luminex projects 2020 revenues at $410 million, suggesting growth of 23% from the figure reported in 2019. The Zacks Consensus estimate for the same is pegged at $421.9 million.
Revenues for 2021 are estimated by the company to be at or above $475 million. The Zacks Consensus Estimate for the same is pegged at $451.5 million.
Wrapping Up
Luminex exited the third quarter on a weak note. Revenues at Consumables and Royalty operating segments declined in the quarter. However, the company continues to gain from its flagship ARIES and VERIGENE platforms that currently have a strong customer base. Also, the company witnessed total sample-to-answer molecular diagnostics revenue growth in the quarter. Expansion of gross margin is a positive. Notably the FDA Emergency Use Authorization (EUA) for the ARIES SARS-CoV-2 Assay continues to instill optimism.
Zacks Rank and Key Picks
Currently, Luminex carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader medical space that have announced their quarterly results are Thermo Fisher Scientific Inc. (TMO - Free Report) , Align Technology, Inc. (ALGN - Free Report) and AngioDynamics, Inc. (ANGO - Free Report) , each carrying a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Thermo Fisher reported third-quarter 2020 adjusted EPS of $5.63, beating the Zacks Consensus Estimate by 28.8%. Revenues of $8.52 billion surpassed the consensus mark by 10%.
Align Technology reported third-quarter 2020 adjusted EPS of $2.25, which surpassed the Zacks Consensus Estimate by 281.4%. Revenues of $734.1 million outpaced the consensus mark by 38%.
AngioDynamics reported first-quarter fiscal 2021 adjusted EPS of 2 cents against the Zacks Consensus Estimate of a loss per share of 6 cents. Revenues of $70.2 million beat the consensus mark by 6.9%.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>