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BioLife (BLFS) to Report Q3 Earnings: What's in the Cards?

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BioLife Solutions, Inc.’s (BLFS - Free Report) third-quarter 2018 results are scheduled for release on Nov 8, after market close. While the company is likely to gain from biopreservation media products, stiff competition might show on results.

Q2 Results at a Glance

In the last reported quarter, BioLife reported adjusted earnings per share of 5 cents, beating the Zacks Consensus Estimate of 3 cents.

The company reported revenues of $5.2 million, in line with the Zacks Consensus Estimate. Revenues skyrocketed 102% year over year.

BioLife has an average positive earnings surprise of 51.8% for the trailing four quarters.

Which Way Are Estimates Treading for Q3?

For the quarter to be reported, the Zacks Consensus Estimate for earnings is pegged at 4 cents per share, reflecting a whopping increase of 233.3% year over year. The same for revenues is pinned at $5.2 million, indicating growth of 75.2% from the year-ago quarter.

BioLife Solutions, Inc. Price and EPS Surprise

 

BioLife Solutions, Inc. Price and EPS Surprise | BioLife Solutions, Inc. Quote

For investors’ notice BioLife has declared preliminary results for the third quarter in October. Let’s delve deeper.

Biopreservation Media to Drive Q3

BioLife’s business segments — Regenerative Medicine and Distributors — are expected to drive the top line in the quarter to be reported.

In the last reported quarter, biopreservation media product revenues solely contributed to net sales. It is encouraging to note that, for the third quarter, BioLife reported preliminary biopreservation media revenues of $5.3 million, which reflects a year-over-year upside of 79%.

Management is optimistic about its flagship products like CryoStor and HypoThermosol, which currently sees strong demand. Management further stated that BioLife's proprietary biopreservation media products have been used in more than 300 customer clinical applications, including dozens of CAR T-cell and other T cell immunotherapies targeting blood cancers and solid tumors.

Coming to the segmental revenues, preliminary regenerative medicine segment revenues totaled $2.9 million, up 80% year over year. Preliminary distributor revenues were $1.9 million, up 148% from the prior-year quarter.

However, BioLife raised the guidance for its operating expenses for 2018. While this reflects room for further improvement, surging operating expenses might keep margins under pressure.

Additionally, an intensely competitive life sciences industry is likely to mar prospects. BioLife anticipates increased competition from new and improved products developed by existing companies like Sigma-Aldrich, Lonza and Life Technologies as well as technologies by companies entering the market.

What Does Our Model Say?

Per our proven model, a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to deliver a positive earnings surprise in the quarter. However, this is not the case here.

Earnings ESP: BioLife has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: BioLife carries a Zacks Rank #3.

Please note that we caution against stocks with a Zacks Rank #4 (Sell) or 5 (Strong Sell) going into the earnings announcement, especially when the company is seeing negative estimate revision.

Stocks Worth a Look

Here are a few medical stocks worth considering as they have the right combination of elements to post an earnings beat this quarter.

DENTSPLY SIRONA (XRAY - Free Report) has an Earnings ESP of +0.98% and a Zacks Rank #3.

Quidel Corporation (QDEL - Free Report) has an Earnings ESP of +10.55% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Patterson Companies (PDCO - Free Report) has an Earnings ESP of +0.82% and a Zacks Rank #3.

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