Analysis prepared by Equity Analyst Jeffrey Loo CFA on May 12, 2011, when the stock traded at $55.88
"We expect sales to rise 6.5% in 2011 to $3.8 billion. We look for sales in molecular biology, driven by robust demand for genomic assays and real-time PCR consumables, to rise in the mid single-digits; genetic systems, aided by strong sales from the introduction of its Ion Torrent Personal Genome Machine and from the new SOLiD 5500xl, to grow in the high singledigits; and Cell System sales, on robust primary stem cell sales, to rise in the high single-digits. Due to currency hedges, we see gross margins declining 20 basis points (bps), but we forecast operating margins will rise 60 bps on leverage and cost saving synergies. Increased usage of LIFE's eCommerce platform, which currently processes 55% of transactions, should also boost margins".