Affymetrix Earnings: Here’s Why Investors Don’t Like These Results

Affymetrix Inc. (NASDAQ:AFFX) had a loss 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 0.09%.

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Affymetrix Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $-0.01 in the quarter versus EPS of $-0.04 in the year-earlier quarter.

Revenue: Rose 19.39% to $77.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Affymetrix Inc. reported adjusted EPS loss of $0.01 per share. By that measure, the company beat the mean analyst estimate of $-0.02. It missed the average revenue estimate of $79.96 million.

Quoting Management: “Although the quarter was a challenging one, we continue to focus on opportunities in translational science, molecular diagnostics and applied markets. We again demonstrated strong growth in our Genetic Analysis business segments of cytogenetics and genotyping and a modest increase in eBioscience,” said Frank Witney, President and CEO. “In addition, we continue to pay down our senior debt which we have reduced from $85 million to approximately $70 million over the last 9 months.”

Key Stats (on next page)…

Revenue decreased 7.65% from $84.35 million in the previous quarter. EPS increased to $-0.01 in the quarter versus EPS of $-0.02 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 loss of $0 to a profit $0.01. For the current year, the average estimate is a profit of $0.04, which is the same with that ninety days ago.

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