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Can Mass Cytometry Drive Fluidigm's (FLDM) Q1 Earnings?

Zacks Equity Research

Fluidigm Corporation FLDM is scheduled to release first-quarter 2019 results on May 2, before the opening bell.

In the last reported quarter, the company delivered a positive earnings surprise of 70%. Further, it has an average four-quarter positive surprise of 28.56%.

Let’s take a look at how things are shaping up prior to this announcement.

Which Way are Q1 Estimates Treading?

For the first quarter, the Zacks Consensus Estimate for revenues is pegged at $28.9 million, indicating a rise of 14.4% from the year-ago quarter. The consensus estimate for the bottom line is pegged at a loss of 10 cents per share, suggesting an improvement from the year-ago quarter’s loss of 16 cents per share.

Factors to Influence Q1

The company anticipates witnessing growth in mass cytometry consumables and service revenues in the to-be-reported quarter, backed by increase in utilization of its installed base consumables pull-through. In fact, the company expects growth in consumables pull-through for mass cytometry in 2019, with the projection ranging between $73,000 and $78,000.

Further, the company experienced robust sales growth for both Helios and Hyperion Imaging Systems in the first quarter that will contribute to anticipated growth in mass cytometry consumables and service revenues.

Additionally, the trend displayed by multisystem placements is likely to continue, due to immunology related research in pharma and biotech.

Fluidigm Corporation Price and EPS Surprise

 

Fluidigm Corporation Price and EPS Surprise | Fluidigm Corporation Quote

Fluidigm is likely to report solid revenue growth across all its main geographies in the to-be-reported quarter. While mass cytometry might have driven revenue growth in the United States, Asia Pacific’s growth has likely been fueled by mass cytometry and microfluidic consumable sales.
As for EMEA (Europe, the Middle East and Africa) growth in microfluidics and mass cytometry consumables might have driven revenues.

For the first quarter, the company projects total revenues in the range of $28 million to $31 million. The anticipated improvement can be attributed to better-than-expected performance by mass cytometry, expected revenue growth across all the main geographies and strong operational execution.

Interestingly, strategies like the company’s personalized medicine initiative aiming to sequence a million people in the United States and microfluidics platform powering the sample identification tracking of human samples for a major sequencing center are likely to generate recurring success in 2019.

However, microfluidic installed base is likely to be impacted negatively in the first quarter owing to headwinds in its single cell business and focus on high throughput consumers. With respect to microfluidics revenues, the company continues to project variability on a quarter-over-quarter basis. Execution of strategy to focus on key accounts and emphasis on growing the business with new applications and partnerships that align with the strategy are the primary factors for the variability.

Additionally, the company is likely to report an increase in its operating expenses in the to-be-reported quarter, with the first quarter estimate ranging between $26.5 million and $27.5 million.

What Our Quantitative Model Suggests

Per the proven Zacks model, a company with a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Fluidigm has a Zacks Rank #2 and an Earnings ESP of 0.00%, a combination that makes surprise prediction difficult.

Please note that we caution against stocks with a Zacks Rank #4 (Sell) or 5 (Strong Sell) going into the earnings announcement, especially when the company is witnessing negative estimate revisions.  

Stocks Worth a Look

Here are some stocks worth considering from the same space as these have the right combination of elements to beat on earnings this time around.

Teleflex Incorporated TFX has an Earnings ESP of +1.65% and a Zacks Rank #3.

T2 Biosystems, Inc. TTOO has an Earnings ESP of +5.62% and a Zacks Rank #3.

STERIS plc STE has an Earnings ESP of +0.35% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

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Teleflex Incorporated (TFX) : Free Stock Analysis Report
 
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STERIS plc (STE) : Free Stock Analysis Report
 
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