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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 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%.

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