Sequenom Earnings: Here’s Why Investors are Buying Shares Now
Sequenom Inc. (NASDAQ:SQNM) had a loss and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 5.04%.
Sequenom Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased to $-0.26 in the quarter versus EPS of $-0.22 in the year-earlier quarter.
Revenue: Rose 158.04% to $38.5 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Sequenom Inc. reported adjusted EPS loss of $0.26 per share. By that measure, the company missed the mean analyst estimate of $-0.24. It beat the average revenue estimate of $38.29 million.
Quoting Management: “We are pleased to see sequential improvements in volume, revenue and margin during the quarter, an indication of steady growth and sustained momentum in 2013,” said Paul V. Maier, Sequenom’s CFO. “As we complete the process of moving our billing and collections processes in-house, we anticipate even greater control in monitoring our payments from payors and improved workflows that will help us improve our collection cycle and reimbursement.”
Key Stats (on next page)…
Revenue increased 14.35% from $33.67 million in the previous quarter. EPS increased to $-0.26 in the quarter versus EPS of $-0.29 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 loss of $0.18 to a loss $0.23. For the current year, the average estimate has moved down from a loss of $0.6 to a loss of $0.79 over the last ninety days.
Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.
(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)