Abaxis Earnings: Here’s Why Investors are Ambivalent Now

Abaxis Inc. (NASDAQ:ABAX) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 0%.

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Abaxis Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 42.86% to $0.3 in the quarter versus EPS of $0.21 in the year-earlier quarter.

Revenue: Rose 17.04% to $50 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Abaxis Inc. reported adjusted EPS income of $0.3 per share. By that measure, the company beat the mean analyst estimate of $0.26. It missed the average revenue estimate of $52.62 million.

Quoting Management: Clint Severson, chairman and chief executive officer of Abaxis, said, “We are pleased with the operating results achieved in the fourth quarter and fiscal year 2013. Instrument sales across the board, including both the veterinary and the medical markets, were up 31 percent for the year. Reagent disc unit sales for the year were up 11 percent to a record 7.5 million units. Additionally, we are gratified that the ten-year compounded annual growth rate in our total reagent disc unit sales is greater than 15 percent. Sales in North America and internationally were up 18 percent and 20 percent, respectively. One of the key strengths of the company is our higher margin consumable sales, which increased 16 percent in the fourth quarter and represented 72 percent of total fourth quarter revenue. We remain firmly focused on maximizing this core component of our business which constitutes our recurring revenue stream.”

Key Stats (on next page)…

Revenue increased 0.4% from $49.8 million in the previous quarter. EPS increased 36.36% from $0.22 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.23 to a profit $0.24. For the current year, the average estimate has moved up from a profit of $0.76 to a profit of $0.8 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)