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Luminex (LMNX) Banks on FDA Approvals & Portfolio Strength
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On Nov 16, we issued an updated research report on Luminex Corp — a manufacturer and marketer of proprietary biological testing technologies with applications throughout the life sciences and diagnostics industry.
In the third quarter, the company saw strong top-line performance, solid cash flow and higher profits. The company’s Assay business is likely to be a key growth driver over the long term. Luminex reported earnings of 19 cents per share in third quarter 2017. Revenues in the quarter improved almost 4.2% year over year.
Luminex reiterated its 2017 annual revenue guidance in the range of $300-$310 million. This depicts 11-14% growth on a year-over-year basis. Luminex expects gross margins for the next few quarters in the mid-60s. Meanwhile, the company projects fourth-quarter 2017 revenues in the range of $76 million to $78 million.
Recently, the company also witnessed favorable tidings at the regulatory front. In this regard, the recent CE-IVD mark for the ARIES Norovirus Assay, the FDA approval of ARIES C. difficile Assay and the reimbursement approval of VERIGENE assay in Japan are noteworthy. Luminex is on the verge of completing its clinical study for Group A Strep and is close to submitting the same for FDA review.
The company has a diverse product portfolio that comprises the advanced xMAP, xTAG and MultiCode technology. Moreover, Luminex has collaborative agreements with several companies, which should help expand the use of its products/technology. Notably, Luminex had earlier announced the signing of a new supply and distribution agreement with Bio-Techne through 2020. Luminex also entered into a similar deal with Affymetrix. Under the terms of the agreement, eBioscience, a business division of Affymetrix, will commercialize MAGPIX, Luminex 200 and FLEXMAP 3D multiplexed assay platforms in select countries of the Americas, Asia and Europe.
On the flipside, reimbursement landscape and cutthroat competition continue to be major challenges. Also, the price movement of Luminex has been unfavorable in the last year. Notably, the stock has gained only 3.3% compared with the industry’s rally of roughly 20.1%.
PetMed has a long-term expected earnings growth rate of 10%. The stock has rallied roughly 71.8% in the last year.
Align Technology has a long-term expected earnings growth rate of 28.9%. The stock has returned 170.1% in the last year.
Myriad Genetics has a long-term expected earnings growth rate of 15%. The stock has returned 87.1% in the last year.
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors.
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Luminex (LMNX) Banks on FDA Approvals & Portfolio Strength
On Nov 16, we issued an updated research report on Luminex Corp — a manufacturer and marketer of proprietary biological testing technologies with applications throughout the life sciences and diagnostics industry.
In the third quarter, the company saw strong top-line performance, solid cash flow and higher profits. The company’s Assay business is likely to be a key growth driver over the long term. Luminex reported earnings of 19 cents per share in third quarter 2017. Revenues in the quarter improved almost 4.2% year over year.
Luminex reiterated its 2017 annual revenue guidance in the range of $300-$310 million. This depicts 11-14% growth on a year-over-year basis. Luminex expects gross margins for the next few quarters in the mid-60s. Meanwhile, the company projects fourth-quarter 2017 revenues in the range of $76 million to $78 million.
Recently, the company also witnessed favorable tidings at the regulatory front. In this regard, the recent CE-IVD mark for the ARIES Norovirus Assay, the FDA approval of ARIES C. difficile Assay and the reimbursement approval of VERIGENE assay in Japan are noteworthy. Luminex is on the verge of completing its clinical study for Group A Strep and is close to submitting the same for FDA review.
The company has a diverse product portfolio that comprises the advanced xMAP, xTAG and MultiCode technology. Moreover, Luminex has collaborative agreements with several companies, which should help expand the use of its products/technology. Notably, Luminex had earlier announced the signing of a new supply and distribution agreement with Bio-Techne through 2020. Luminex also entered into a similar deal with Affymetrix. Under the terms of the agreement, eBioscience, a business division of Affymetrix, will commercialize MAGPIX, Luminex 200 and FLEXMAP 3D multiplexed assay platforms in select countries of the Americas, Asia and Europe.
On the flipside, reimbursement landscape and cutthroat competition continue to be major challenges. Also, the price movement of Luminex has been unfavorable in the last year. Notably, the stock has gained only 3.3% compared with the industry’s rally of roughly 20.1%.
Zacks Rank & Other Key Picks
Luminex carries a Zacks Rank #2 (Buy).
A few other top-ranked medical stocks are PetMed Express, Inc. (PETS - Free Report) , Align Technology, Inc. (ALGN - Free Report) and Myriad Genetics, Inc. (MYGN - Free Report) . PetMed, Align Technology and Myriad Genetics sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
PetMed has a long-term expected earnings growth rate of 10%. The stock has rallied roughly 71.8% in the last year.
Align Technology has a long-term expected earnings growth rate of 28.9%. The stock has returned 170.1% in the last year.
Myriad Genetics has a long-term expected earnings growth rate of 15%. The stock has returned 87.1% in the last year.
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors.
Click here for Zacks' private trades >>