Affymetrix Up on Upbeat Rev Guidance - Analyst Blog
January 08 2014 - 4:45PM
Zacks
Affymetrix Inc.
(AFFX) announced its preliminary revenue guidance for the fourth
quarter and full year 2013. Affymetrix’ shares gained over 11.5% on
Jan 7 to end the day’s trading at $8.81 on the back of the
optimistic guidance.
Affymetrix expects fourth quarter 2013 revenues around $91 million,
representing an increase of 7.8% from $84.4 million in the year-ago
quarter. Affymetrix’ fourth quarter revenue guidance includes a
one-time licensing payment of $5.3 million from one of its
partners. The company’s guidance is also well above the Zacks
Consensus Estimate of $79 million.
We note that Affymetrix’ total revenues primarily consist of
product sales and services and other revenues. The company’s
product revenues include Affymetrix core consumable revenues,
instrument revenues and revenues from eBioscience, which was
acquired in Jun 2012.
Affymetrix expects its 2013 total revenues to be approximately $329
million, an increase of 11.3% from $295.6 million in the year-ago
period. The company’s 2013 revenue guidance is slightly above the
Zacks Consensus Estimate of $328 million.
We believe that the company is ready for a turnaround with the
worst behind them. In the face of declining demand for its flagship
GeneChip Expression products, management’s strategy of transforming
Affymetrix into a company with a broad reach in the high-growth
markets for translational medicine, molecular diagnostics and
applied markets is indeed encouraging.
On the back of the positive guidance, Affymetrix was upgraded to a
Zacks Rank #1 (Strong Buy) on Jan 8. Some other stocks worth
considering include Forest Laboratories Inc.
(FRX), WuXi PharmaTech (Cayman) Inc. (WX) and
Gentium (GENT), all holding a Zacks Rank #1.
AFFYMETRIX INC (AFFX): Free Stock Analysis Report
FOREST LABS A (FRX): Free Stock Analysis Report
GENTIUM SPA-ADR (GENT): Free Stock Analysis Report
WUXI PHARMATECH (WX): Free Stock Analysis Report
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