Cepheid's Preliminary 3Q Disappoints - Analyst Blog
27 9월 2012 - 5:15PM
Zacks
After reporting a disappointing
second quarter 2012, Cepheid’s (CPHD) preliminary
results for the third quarter of 2012 were also below the consensus
estimate. The company is likely to report revenues in the range of
$79−$81 million, while the current Zacks Consensus Estimate stands
at $84 million for the third quarter. As per the Zacks Consensus
Estimate, Cepheid is expected to report earnings of 3 cents per
share in the quarter.
The shortfall in revenues was
primarily due to delay in the supply of Xpert cartridge parts.
Although Cepheid is addressing the issue, order backlog at the end
of the quarter would be approximately $5 million, which will be
shipped by October. As the demand for the Xpert family of tests
surged, the company failed to maintain production at the required
level.
Excluding the supply related
issued, Cepheid could report revenues in the range of $84−$86
million. We are impressed to note that the company recorded strong
contribution from the High Burden Developing Country program
following the first buy-down agreement in early August.
Based on Cepheid’s agreement with
the Bill & Melinda Gates Foundation, the United States
President's Emergency Plan for AIDS Relief, the United States
Agency for International Development and UNITAID, the price of
Xpert MTB/RIF (the tuberculosis diagnostic test) was reduced to
$9.98 per test (from $16.86), the difference being funded by the
collaborators. However, commercial system sales in the US remained
weak due to a challenging environment.
The outlook for 2012 was reiterated
at $333−$347 million. Cepheid will provide an update on its
earnings guidance during the third quarter conference call,
scheduled on October 18. The current Zacks Consensus Estimate for
2012 stands at 2 cents per share.
At the end of the second quarter,
the EPS guidance was lowered for the second time in the year to 0−4
cents from the previous level of 12−17 cents. At the end of fiscal
2011 Cepheid had projected EPS of 17−24 cents for 2012.
In another development, a
settlement has been reached with Abaxis (ABAX)
regarding patent litigation. As part of the agreement,
Cepheid will pay Abaxis $17.25 million in return of which, all
claims against it in the pending litigation have been dropped.
We have a ‘Neutral’ recommendation
Cepheid. The stock retains a Zacks #3 Rank (Hold) in the short
term.
ABAXIS INC (ABAX): Free Stock Analysis Report
CEPHEID INC (CPHD): Free Stock Analysis Report
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