Life Technologies Corp Earnings Cheat Sheet: Margins Shrink on Rising Costs, Net Income Falls

S&P 500 (NYSE:SPY) component Life Technologies Corporation (NASDAQ:LIFE) reported its results for the third quarter. Life Technologies is a global biotechnology tools company offering products that include systems, instruments, reagents, and custom services.

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Life Technologies Earnings Cheat Sheet for the Third Quarter

Results: Net income for the biotechnology company fell to $96.3 million (52 cents per share) vs. $105.5 million (56 cents per share) a year earlier. This is a decline of 8.8% from the year earlier quarter.

Revenue: Rose 7% to $928.2 million from the year earlier quarter.

Actual vs. Wall St. Expectations: LIFE reported adjusted net income of 94 cents per share. By that measure, the company beat the mean estimate of 88 cents per share. Analysts were expecting revenue of $916.3 million.

Quoting Management: “We are pleased with our third quarter results. We have seen an improvement in our Greater China business and continue to gain traction with our Ion Torrent products,” said Gregory T. Lucier, Chairman and Chief Executive Officer of Life Technologies. “Although academic government funding pressures are expected to continue in the U.S. and Europe, we are positioning our products and cost structure to succeed in this new environment.”

Key Stats:

Gross margin shrank 1.2 percentage points to 58.1%. The contraction appeared to be driven by increased costs, which rose 10.3% from the year earlier quarter while revenue rose 7%.

Revenue has risen the past four quarters. Revenue increased 4.1% to $941.1 million in the second quarter. The figure rose 1.2% in the first quarter from the year earlier and climbed 7% in the fourth quarter of the last fiscal year from the year-ago quarter.

The company has now seen net income fall in each of the last two quarters. In the second quarter, net income fell 13.7% from the year earlier quarter.

The company topped expectations last quarter after falling short of forecasts in the second quarter with net income of 89 cents versus a mean estimate of net income of 94 cents per share.

Looking Forward: Expectations for the company’s next quarter performance are higher than they were ninety days ago. Over the past three months, the average estimate for the fourth quarter has risen to $1.09 per share from $1.07. At $3.70 per share, the average estimate for the fiscal year has fallen from $3.87 ninety days ago.

Competitors to Watch: Techne Corporation (NASDAQ:TECH), Qiagen NV (NASDAQ:QGEN), Affymetrix, Inc. (NASDAQ:AFFX), Sigma-Aldrich Corporation (NASDAQ:SIAL), Thermo Fisher Scientific Inc. (NYSE:TMO), Strategic Diagnostics Inc. (NASDAQ:SDIX), Agilent Technologies Inc. (NYSE:A), Bio-Rad Laboratories, Inc. (NYSE:BIO), PerkinElmer, Inc. (NYSE:PKI), and Johnson & Johnson (NYSE:JNJ).

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(Source: Xignite Financials)

 

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