Life Technologies Earnings: Profit Rises for Fourth Straight Quarter
Falling revenue did not prevent S&P 500 (NYSE:SPY) component Life Technologies Corporation (NASDAQ:LIFE) from reporting a profit boost in 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 Corporation Earnings Cheat Sheet
Results: Net income for Life Technologies Corporation rose to $97.4 million (55 cents per share) vs. $96.3 million (52 cents per share) in the same quarter a year earlier. This marks a rise of 1.2% from the year-earlier quarter.
Revenue: Fell 1.8% to $911.2 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Life Technologies Corporation fell short of the mean analyst estimate of 89 cents per share. Analysts were expecting revenue of $920.8 million.
Quoting Management: “Our third quarter performance came in stronger than our expectations driven by a significant increase in Ion Torrent platform sales, as well as increased sales in our research consumables and forensics businesses,” said Gregory T. Lucier, chairman and chief executive officer of Life Technologies. “During the quarter, we made solid progress in expanding our operations and footprint in high growth and emerging markets, including entering into strategic partnerships for companion diagnostics, building the foundation for our Medical Sciences business and acquiring distributors in China and Chile. We achieved important milestones with several highly anticipated launches including the Ion Proton System, a platform whose speed, ease of use and affordability will democratize genome sequencing, and our Pervenio Lung RS test service, the first of its kind molecular test to identify early-stage lung cancer patients who are at high risk of reoccurrence following surgery.”
The company has now seen its net income increase for three consecutive quarters. In the second quarter, net income rose 28.2% and in the first quarter, the figure rose 41.6%.
A year-over-year revenue decrease last quarter breaks a four-quarter streak of revenue increases. The best quarter in that span was the fourth quarter of the last fiscal year, which saw revenue rise 8.4%.
The company has now fallen short of estimates in the last two quarters. In the second quarter, it missed expectations by one cent with net income of 96 cents versus a mean estimate of net income of 97 cents per share.
Looking Forward: Expectations for the fourth quarter have not changed from $1.11. The average estimate hasn’t changed from $3.95 per share for the fiscal year.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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