NEW YORK (TheStreet) -- Luminex
(LMNX - Get Report) shares are up 18.3% to $18.81 on Tuesday following the release of the company's first quarter 2014 earnings results.
Non-GAAP net income for the quarter was $9.9 million, or 24 cents per share, doubling analysts estimates.
Year over year quarterly revenues were up 6% to $56.6 million, in line with analysts estimates.
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TheStreet Ratings team rates LUMINEX CORP as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate LUMINEX CORP (LMNX) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, expanding profit margins and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- LMNX's debt-to-equity ratio is very low at 0.01 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 3.63, which clearly demonstrates the ability to cover short-term cash needs.
- LUMINEX CORP has improved earnings per share by 20.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, LUMINEX CORP reported lower earnings of $0.17 versus $0.29 in the prior year. This year, the market expects an improvement in earnings ($0.46 versus $0.17).
- The gross profit margin for LUMINEX CORP is currently very high, coming in at 73.13%. Regardless of LMNX's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 9.27% trails the industry average.
- LMNX, with its decline in revenue, underperformed when compared the industry average of 16.1%. Since the same quarter one year prior, revenues slightly dropped by 0.7%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- The company, on the basis of net income growth from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Life Sciences Tools & Services industry average. The net income increased by 20.3% when compared to the same quarter one year prior, going from $4.25 million to $5.12 million.
- You can view the full analysis from the report here: LMNX Ratings Report