Luminex Reports Mixed 3Q

Piper Jaffray has published a research report on Luminex Corporation LMNX after the company reported revenues and losses per share lower than expected across the board. In the report, Piper Jaffray writes "Luminex increased revenue by 16.3% yoy to $33.9M, below our $34.8M and Street consensus estimates ($35.3M). Technology Group revenue fell short of expectations, increasing 11.6% yoy to $24.6M, below our $26.4M estimate, with a 42.4% consumables increase to $8.6M, below our $10.6M estimate and accounting for the majority of the revenue short fall. System placements topped expectations, with 231 instruments placed in the quarter (PJC: 211), translating into $8.1M in revenue (PJC: $7.8M). Assay segment revenue increased 30.9% yoy to $9.3M, above our $8.4M estimate. We estimate xTAG RVP revenue was ~$2.9M (up 15.8% yoy), above our $2.5M estimate. Gross margin of 64.5% was flat yoy and below our 70.1% estimate, with a scrap charge (est. 250 bpts or $850K) weighing on the metric. Loss per share of ($0.02) was $0.07 below our $0.05 estimate and missed consensus by $0.06 (Street: $0.04)." Piper Jaffray maintains its Underweight rating and $15 price target. Luminex Corporation closed yesterday at $18.48.