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Luminex (LMNX) Q4 Earnings Miss Estimates, Revenues Beat

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Luminex Corporation  reported fourth-quarter 2020 earnings per share (EPS) of 1 cent, missing the Zacks Consensus Estimate by 92.9%. The bottomline also fell 85.7% year over year.

For 2020, EPS came in at 32 cents, also lagging the Zacks Consensus Estimate by 27.3%. However, the company reported a loss per share of 9 cents in the year-ago period.

Revenues

For the fourth quarter, revenues summed $111.4 million, beating the Zacks Consensus Estimate by 0.4%. The top line also improved 23% on a year-over-year basis.

For the full year, revenues came at $417.4 million, beating the Zacks Consensus Estimate by 1.8%.The topline also rose 25% year over year.

Segmental Analysis

For the fourth quarter, total sample-to-answer molecular diagnostics revenues grew 49% from the prior-year quarter.

System Sales

Revenues at this segment totaled $23.8 million, up 14% from the year-ago quarter.

Consumable Sales

This segment accounted for $12.9 million of revenues, up 11% year over year.

Royalty Revenues

Royalty revenues totaled $13.9 million, up 3% on a year-over-year basis.

Assay Revenues

This segment reported revenues worth $51.3 million, up 41% on a year-over-year basis.

Service Revenues

Revenues in the segment amounted to $6.3 million, up 12% from the year-ago quarter.

Other

Other revenues came in at $3.1 million, up 28% from the prior-year quarter.

Financial Update

The company exited the fourth quarter with cash and cash equivalents of $309.4 million, up from $308.5 millionon a sequential basis.

Cumulative net cash provided by operating activities at the end of the fourth quarter of 2020 came in at $49.9 million compared with $13.5 million in the year-ago period.

 

Luminex Corporation Price, Consensus and EPS Surprise

Luminex Corporation Price, Consensus and EPS Surprise

 

Luminex Corporation price-consensus-eps-surprise-chart | Luminex Corporation Quote


Margins

Gross profit in the reported quarter was $64.4 million, up 29.2% year over year. Gross margin was 57.9%, expanding 275 basis points (bps).

The company reported adjusted operating profit of $13.4 million, up 130% from the  year-ago quarter’s figure. Adjusted operating margin came in at 12%, expanding 560 bps.

Guidance

Revenues for 2021 are reaffirmed to be around $480 million, indicating growth of more than 15% from Luminex's reported 2020 tally. The Zacks Consensus Estimate for the same is pegged at $476.2 million.

Wrapping Up

Luminex exited the fourth quarter on a mixed note. Revenues at each operating segment improved in the quarter. Also, the company continues to gain from its flagship ARIES and VERIGENE platforms that currently have a strong customer base.Further, it witnessed total sample-to-answer molecular diagnostics revenue growth in the quarter. Expansion of both margins is a positive too. Notably the FDA’s Emergency Use Authorization (EUA) for the ARIES SARS-CoV-2 Assay continues to instill optimism on the stock.

However, the plunge in the bottomline is concerning.

Zacks Rank and Other Key Picks

Currently, Luminex carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the broader medical space that already announced quarterly results are Hologic, Inc. (HOLX - Free Report) , Abbott Laboratories (ABT - Free Report) and AngioDynamics, Inc. (ANGO - Free Report) . While Hologic sports a Zacks Rank #1 (Strong Buy), the other two presently carry the same Zacks Rank as Luminex.You can see the complete list of today’s Zacks #1 Rank stocks here.

Hologic reported first-quarter fiscal 2021 adjusted EPS of $2.86, which surpassed the Zacks Consensus Estimate by 33.6%.

Abbott reported fourth-quarter 2020 adjusted EPS of $1.45, which surpassed the Zacks Consensus Estimate by 6.6%. Further, fourth-quarter worldwide sales of $10.7 billion outpaced the consensus mark by 7.9%.

AngioDynamics reported second-quarter fiscal 2021 adjusted EPS of a penny. The Zacks Consensus Estimate was of a loss per share of 2 cents. Additionally, revenues of $72.8 million beat the consensus mark by 8%.

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