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Luminex (LMNX) Reports Q1 Loss, Misses Revenue Estimates

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Luminex Corporation reported first-quarter 2019 loss of 7 cents per share (EPS), against the Zacks Consensus Estimate of earnings of 7 cents per share. Notably, the company reported earnings of 25 cents per share in the year-ago quarter.

Revenues in Detail

Revenues came in at $82.4 million, missing the Zacks Consensus Estimate by 0.9%. On a year-over-year basis, the top line dropped 0.4%.

Total sample-to-answer franchise revenues grew 16% from the prior-year quarter.

Segmental Analysis

System Sales

Revenues at this segment totaled $15.7 million, soaring 97.5% from the year-ago quarter.

Consumable Sales

This segment accounted for $10.7 million of revenues, down 9.7% year over year.

Royalty Revenues

Royalty revenues summed $14.2 million, up 15.8% on a year-over-year basis.

Assay Revenues

This segment reported revenues worth $34.8 million, down 24.1% on a year-over-year basis.

Service Revenues

Revenues in the segment grossed $5.4 million, up 87.4% from the year-ago quarter.

Other

Other revenues came in at $1.6 million, down 13.9% from a year ago.

Luminex Corporation Price, Consensus and EPS Surprise

 

Luminex Corporation Price, Consensus and EPS Surprise | Luminex Corporation Quote

Business Details

Per management, this Texas-based company placed 50 sample-to-answer molecular systems under contract during the first quarter. Active sample-to-answer customers totaled 625 in the quarter under review.

Financial Update

As of Mar 31, 2019, cash and cash equivalents totaled $61.7 million, down 19.3% from 2018-end level.

Cash flow from operating activities for the three months ended Mar 31, 2019, came in at ($7.1) million, against $13.9 million in the prior-year quarter.

Margins

Gross profit in the reported quarter was $45.8 million, down 14.5% year over year. Gross margin was 55.6%, contracting 920 bps.

Research and development expenses grossed $15 million, up 45.7% year over year. Selling, general and administrative expenses in the first quarter were $31.5 million, up 21.9% year over year. Total operating expenses amounted to $49.4 million, up 28.9% from the year-ago reported figure.

The company incurred operating loss of $3.6 million, against the year-ago quarter’s operating income of $15.3 million.

Guidance

For the second quarter of 2019, the company anticipates revenues between $80 million and $83 million. The mid-point of the latest guidance of $81.5 million lies below the Zacks Consensus Estimate of $82.5 million.

Notably the company reiterated 2019 revenue outlook, which is estimated in the band of $337-$343 million. The mid-point of the latest guidance of $340 million is below the Zacks Consensus Estimate of $341.6 million.

In Conclusion

Luminex exited the first quarter on a dismal note. Nonetheless, the company continues to gain from its flagship ARIES and VERIGENE platforms that currently have a strong customer base. System sales and Royalty revenues also improved significantly. Management remains optimistic about the acquisition of the flow cytometry asset of MilliporeSigma. Robust guidance for the second quarter of 2019 raises optimism in the stock.

Meanwhile, the company’s assay and molecular diagnostic revenues also declined in the quarter. Contraction in gross margin add to woes.

Zacks Rank

Currently, Luminex carries a Zacks Rank #5 (Strong Sell).

Earnings of MedTech Majors at a Glance

Some better-ranked stocks which reported solid results this earning season are Stryker Corporation (SYK - Free Report) , Abbott Laboratories (ABT - Free Report) and CONMED Corporation (CNMD - 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 

Stryker delivered first-quarter 2019 adjusted earnings per share of $1.88, beating the Zacks Consensus Estimate by 2.2%. Revenues of $3.52 billion were in line with the Zacks Consensus Estimate.

Abbott reported first-quarter 2019 adjusted earnings of 63 cents per share, beating the Zacks Consensus Estimate by 3.3%. First-quarter worldwide sales came in at $7.54 billion, above the Zacks Consensus Estimate of $7.47 billion.

CONMED posted first-quarter 2019 adjusted earnings per share of 57 cents, which beat the Zacks Consensus Estimate of 54 cents. Revenues were $218.4 million, surpassing the Zacks Consensus Estimate of $213 million.

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