Life Technologies Earnings: Falling Costs Help Margins EXPAND, Profit RISES

S&P 500 (NYSE:SPY) component Life Technologies Corporation (NASDAQ:LIFE) reported its results for the second 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 Corporation Earnings Cheat Sheet

Results: Net income for Life Technologies Corporation rose to $122.4 million (67 cents per share) vs. $95.5 million (52 cents per share) in the same quarter a year earlier. This marks a rise of 28.2% from the year-earlier quarter.

Revenue: Rose 0.9% to $949.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Life Technologies Corporation fell short of the mean analyst estimate of 97 cents per share. It beat the average revenue estimate of $920.8 million.

Quoting Management: “We finished the first half of 2012 in line with our expectations, as strength in our BioProduction and Ion Torrent businesses enabled us to grow revenue in the second quarter by five percent, excluding nearly $40 million in headwinds from expected declines in sales of our SOLiD 5500 product and qPCR royalties,” said Gregory T. Lucier, chairman and chief executive officer of Life Technologies.

Key Stats:

The company has now seen its net income increase for three consecutive quarters. In the first quarter, net income rose 41.6% and in the fourth quarter of the last fiscal year, the figure rose 31.7%.

Revenue has increased for four consecutive quarters. Revenue increased 4.8% to $939.1 million in the first quarter. The figure rose 8.4% in the fourth quarter of the last fiscal year from the year earlier and climbed 7% in the third quarter of the last fiscal year from the year-ago quarter.

After beating analyst estimates for the two previous quarters, the company fell short of forecasts. In the first quarter, it topped the mark by 6 cents, and in the fourth quarter of the last fiscal year, it was ahead by 3 cents.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the third quarter has moved down from 98 cents a share to 96 cents over the last ninety days. The average estimate for the fiscal year is $4 per share, falling from $4.03 thirty days ago.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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