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Luminex (LMNX) Q2 Earnings Beat Estimates, Revenues Miss

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Zacks Equity Research
·4 min read
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Luminex Corporation LMNX reported second-quarter 2020 adjusted earnings of 27 cent per share (EPS), beating the Zacks Consensus Estimate of 8 cents. The company had reported loss per share of 11 cents in the year-ago period.

Revenues came in at $109.5 million, missing the Zacks Consensus Estimate by a marginal 0.1%. However, the top line improved 31.8% on a year-over-year basis.

Total sample-to-answer molecular diagnostics revenues grew more than 100% from the prior-year quarter.

Segmental Analysis

System Sales

Revenues at this segment totaled $15.5 million, down16.7% from the year-ago quarter.

Consumable Sales

This segment accounted for $11.3 million of revenues, down 11% year over year.

Royalty Revenues

Royalty revenues totaled $12.1 million, down 5.5% on a year-over-year basis.

Assay Revenues

This segment reported revenues worth $61.2 million, up 94.9% on a year-over-year basis.

Service Revenues

Revenues at the segment amounted to $5.5 million, down 8.3% from the year-ago quarter.

Other

Other revenues came in at $3.9 million, up 160% from the prior-year quarter.

Luminex Corporation Price, Consensus and EPS Surprise

 

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

Luminex Corporation price-consensus-eps-surprise-chart | Luminex Corporation Quote

Financial Update

The company exited second quarter with cash and cash equivalents of $291.7 million, up from $43.1 million on a sequential basis.

Cumulative net cash provided by operating activities at the end of the second quarter of 2020 came in at $24.1 million against cumulative net cash used in operating activities of $1.2 million in the year-ago period.

Margins

Gross profit in the reported quarter was $69.7 million, up 54.1% year over year. Gross margin was 63.6%, expanding 917 basis points (bps).

The company reported adjusted operating profit of $21.6 million against the year-ago quarter’s adjusted operating loss of $2.9 million. Adjusted operating margin came in at 19.7%, highlighting an expansion of 2324 bps.

2020 Guidance

Luminex projects third-quarter 2020 revenues at or above $100 million, suggesting growth above 26% from the figure reported in third-quarter 2019.The Zacks Consensus estimate for the same is pegged at $93.3 million.

Revenues for 2020 are estimated at or above $415 million, reflecting growth of more than 24% from figure reported in 2019. The Zacks Consensus estimate for the same is pegged at $407.4 million.

It is important to note here that the company expects to present an updated full-year revenue outlook in its third-quarter earnings release.

Wrapping Up

Luminex exited the second quarter on a mixed note. The company continues to gain from its flagship ARIES and VERIGENE platforms that currently have a strong customer base. Also, the company witnessed total sample-to-answer molecular diagnostics revenue growth in the quarter. Expansion of both margins is a positive. Notably, in April, the company received U.S. FDA Emergency Use Authorization for the ARIES SARS-CoV-2 Assay.

However, revenues at each operating segment other than Assay and Other segments declined in the quarter.

Zacks Rank and Other Key Picks

Currently, Luminex carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the broader medical space are Thermo Fisher Scientific Inc. TMO, PerkinElmer, Inc. PKI and OPKO Health, Inc. OPK. While PerkinElmer sports a Zacks Rank #1 (Strong Buy), the other two sport a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Thermo Fisher reported second-quarter 2020 adjusted EPS of $3.89, beating the Zacks Consensus Estimate by 45.7%. Revenues of $6.92 billion outpaced the consensus mark by 0.1%.

PerkinElmer reported second-quarter 2020 adjusted EPS of $1.57, surpassing the Zacks Consensus Estimate by 68.8%. Revenues of $811.7 million outpaced the consensus mark by 1.3%.

OPKO Health reported second-quarter 2020 EPS of 5 cents against the Zacks Consensus Estimate of a loss of 7 cents per share. Revenues of $301.2 million surpassed the consensus estimate by 28.4%.

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Luminex Corporation (LMNX) : Free Stock Analysis Report
 
PerkinElmer, Inc. (PKI) : Free Stock Analysis Report
 
Thermo Fisher Scientific Inc. (TMO) : Free Stock Analysis Report
 
OPKO Health, Inc. (OPK) : Free Stock Analysis Report
 
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