U.S. Markets open in 6 hrs 5 mins

Cepheid narrows 3Q loss; issues strong forecast

The Associated Press

NEWS: Cepheid narrowed its third-quarter loss on improved revenue as demand for the company's diagnostic products grew. The quarter's results and its full-year outlook beat market expectations, which sent its shares up in extended trading.

DETAILS: Cepheid said that the revenue grew 8 percent in North America and 57 percent internationally. The Sunnyvale, Calif., company sells molecular diagnostic systems and tests to help institutions perform genetic testing for organisms and genetic-based diseases.

NUMBERS: The company posted a loss of $1.14 million, or 2 cents per share, for the quarter that ended Sept. 30. That is compared with a loss of $21.3 million, or 32 cents per share, last year. Its total revenue increased to $100.1 million from $80.5 million. On an adjusted basis, it earned 9 cents per share versus 1 cent per share last year

Analysts polled by FactSet were anticipating a loss of 13 cents per share for the quarter on revenue of $93.9 million.

FUTURE: Cepheid anticipates adjusted earnings of 22 to 24 cents per share for the year, better than analyst forecasts of a loss of 29 cents per share. It raised its revenue forecast for the year, saying it now expects revenue between $389 million and $391 million, also topping market expectations for $383.5 million.

STOCK: Shares of Cepheid increased $2.03, more than 5 percent, to $40.50 after-hours. Its stock added 43 cents to close regular trading at $38.47.