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Luminex Projects Strong Q4 Revenues, Issues 2017 Guidance

Zacks

Austin, TX based Luminex Corporation LMNX announced that it expects revenues of approximately $72 million for the fourth quarter of 2016 and $271 million for full-year 2016. These results reflect an increase of 20% in the fourth quarter and 14% in 2016 compared with the respective periods in 2015. The upside came mainly from a 32% year-over-year increase in Verigene-related revenues in the fourth quarter.

Over the past one year, Luminex registered a return of almost 8.57%, which is higher than the Zacks categorized Medical Instruments sub-industry’s return of roughly 4.51% but lower than the S&P 500’s return of 18.05%.

The estimate revision trend also seems quite favorable for the stock at this moment, with one estimate moving up in the last 60 days and no downward movement, indicating chances of a recovery ahead. Notably, the current year estimate for the stock stands at 53 cents per share.


Coming back to the news, the company affirmed fiscal 2017 revenue between $295 million and $305 million. Also, the company revealed that it has conducted a reorganization in Dec 2016 to both facilitate the integration of Nanosphere and to better focus on its core business. The restructuring included a headcount reduction of over 50 employees, a reallocation of responsibilities within the R&D organization and a significant reduction of biodefense efforts. This will result in a charge of approximately $2.5 million in the fourth quarter of 2016. However, management expects the restructuring to result in total annualized savings of approximately $9 million.

Luminex develops, manufactures and markets proprietary biological testing technologies with applications throughout the life sciences and diagnostics industry. The company’s open-architecture multiplexing xMAP (Multi-Analyte Profiling) technology is sold worldwide and used by leading research laboratories as well as major pharmaceutical, diagnostic and biotechnology companies for conducting biological tests.

Zacks Rank & Key Picks

Currently, Luminex has a Zacks Rank #3 (Hold).

Better-ranked stocks in the broader medical sector include Addus HomeCare Corporation ADUS, Cogentix Medical, Inc. CGNT and Penumbra Inc. PEN. All the three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Addus HomeCare has a long-term expected earnings growth rate of approximately 15%. Notably, the stock registered an impressive one-year return of 49.4%.

Cogentix Medical posted a positive earnings surprise of 100% in the last reported quarter. Additionally, the company has a promising one-year return of almost 75.8%.

Penumbra has a long-term expected earnings growth rate of approximately 20%. Notably, the stock registered an impressive one-year return of roughly 19.5%.


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