Affymetrix Reaches New 52-Week High - Analyst Blog
December 23 2013 - 3:00PM
Zacks
Shares of Santa Clara, Calif.-based biomedical company
Affymetrix Inc. (AFFX) reached new 52-week high of
$8.84 in mid-day trading last Friday. Shares of the company closed
at $8.73 on the same day, representing a whopping one-year return
of 164.5%.
AFFX has a market cap of $627.8 million. Average volume of shares
traded over the last three months stood at approximately
1,071.3K.
Shares of Affymetrix started escalating following its promising
third quarter results on Oct 30. The company posted adjusted
earnings per share of 5 cents in the third quarter of 2013,
surpassing the Zacks Consensus Estimate of 2 cents and rebounding
from the year-ago adjusted loss of 3 cents.
Revenues inched up 0.9% to $80.4 million, beating the Zacks
Consensus Estimate of $79 million. Product revenues improved 2.9%
to $74.8 million, while Service and other revenues dropped 18.8% to
$5.6 million in the reported quarter.
Gross margin surged 300 basis points (bps) to 55% from 52% in the
third quarter of 2012. However, on an adjusted basis, gross margin
increased 100 bps to 61%.
We believe that AFFX is ready for a turn around and the worst days
are over for the company. In the face of declining demand for
Affymetrix’ flagship GeneChip Expression products, management
strategy to transform AFFX into a company with a broad reach in the
high-growth markets for translational medicine, molecular
diagnostics and applied markets is indeed encouraging.
Currently, AFFX retains a Zacks Rank #2 (Buy). Other better-ranked
stocks in the biomed/gene gene industry include Heska
Corporation (HSKA), InSite Vision
Incorporated (INSV), and Vanda Pharmaceuticals,
Inc. (VNDA). All of them carry a Zacks Rank #1 (Strong
Buy).
AFFYMETRIX INC (AFFX): Free Stock Analysis Report
HESKA CORP (HSKA): Free Stock Analysis Report
INSITE VISION (INSV): Get Free Report
VANDA PHARMACT (VNDA): Free Stock Analysis Report
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