Cepheid Earnings: Here’s Why Investors are Excited Now

Cepheid (NASDAQ:CPHD) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 7.31%.

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Cepheid Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $0.11 in the quarter versus EPS of $-0.08 in the year-earlier quarter.

Revenue: Rose 18.9% to $91.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Cepheid reported adjusted EPS income of $0.11 per share. By that measure, the company beat the mean analyst estimate of $-0.02. It beat the average revenue estimate of $89.12 million.

Quoting Management: “This was a solid start to 2013 for Cepheid with strong performance in our commercial clinical reagents driven both by broader test menu utilization by our installed base of more than 3,000 commercial GeneXpert® system customers globally and by new customer adoption,” said John Bishop, Cepheid’s Chairman and Chief Executive Officer. “Our leading portfolio of molecular HAI tests continues to drive Cepheid’s growth, but we were particularly pleased with the very strong level of interest in Xpert CT/NG in the first quarter, with about 10% of our North American installed base already using or validating the assay.”

Key Stats (on next page)…

Revenue decreased 0.57% from $92.43 million in the previous quarter. EPS increased 37.5% from $0.08 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.02 to a loss $0.01. For the current year, the average estimate has moved down from a profit of $0.13 to a profit of $0.02 over the last ninety days.

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