Piper Jaffray Lowers BLUD Estimates

Piper Jaffray is lowering its numbers on Immucor Inc. BLUD in front of 3Q11. “We are updating our forward estimates for currency (which adds $700k to our forward estimate), which is more than offset by our now lower pricing and volume expectations,” Piper Jaffray writes. “Our new $80.5M 3Q11 revenue estimate reflects $500k in less-positive pricing (now $460k) and constant price reagents of $67.9M, a 3.6% yoy increase (was $69.2M). We continue to model 43 Echo purchase orders (up from 29 in 2Q11 and 26 in 1Q11) and 24 Neo purchase orders (vs. 26 in 2Q11 and 18 in 1Q11). “We continue to model solid yoy gross margin gains (180 bpts to 71.4%) driven by better absorption (two Capture cycles) and lower quality improvement project expenses. We are expecting R&D spending to rebound back to 4Q10/1Q11 levels, with incremental expenses for Sales & Marketing and General & Amortization offsetting the gross margin gains. This nets to a slight yoy decline in operating income and essentially flat pre-tax earnings and EPS of $0.28.” Immucor closed Tuesday at $20.00.