Immucor (BLUD) began fiscal 2011 on a disappointing note with EPS of $0.30, which met the Zacks Consensus Estimate but remained unchanged from the year-ago quarter.
The company has witnessed lower demand from both reagents and instruments, based on which outlook was lowered. While Immucor earns a major part of its revenues from traditional reagents, the company lost some customers to competition as it was unable to provide the required services.
Although the company is taking corrective measures, it will be a while before a major impact is noticed. Moreover, we remain concerned about the quality issues that have yet to be resolved. Based on these factors, we lower our estimates and downgrade the stock to Underperform.
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