Luminex (LMNX) has seen strength across all of its segments that led to a third consecutive earning surprise.
Some valuations are a bit lofty, but a slight pull back could make for a great entry point for shares of LMNX.
Company Description
Luminex makes biological testing products and technologies for the life sciences and diagnostics industries in the U.S. The company works with clinical labs, research and medical institutions, and pharmaceutical companies.
Revenues Gain 43%
On Aug 8 Luminex reported second-quarter revenues of $47.6 million, a 43% increase over the past year. The company’s consumable sales group nearly doubled to a record high and is now about 39% of the overall revenue.
Earnings per share came in at $0.11, 5 cents higher than the Zacks Consensus Estimate. That gives Luminex 3 consecutive earnings surprises.
Analysts React
The Zacks Consensus Estimate for this year is up a nickel, accounting for the surprise, to $0.36. So, the analysts are somewhat conservative on the second half of 2011. But, the 2012 projections are averaging $0.55, also up a nickel.
Last year Luminex made $0.12 per share, so the expected growth rates are now 197% and 53%, respectively.
Valuations are High
If you are looking for a value, this is not the stock for you. While they metrics are high, though, if estimates keep climbing the market should keep buying. Just how high are they?
Shares are going for 39 times the 2012 estimates. That gives the stock a PEG of 1.2 times, which is not too bad. But the P/S is over 5 times and the P/B is north of 3.6 times.
The Chart
LMNX shares can be quite volatile on a day to day basis, however the overall trend has clearly been higher. In the short-term, shares may still be a bit “overbought” but if we see the stock head a bit lower it could be a good time to get into this Zacks #1 Rank (Strong Buy).
Bill Wilton is the Aggressive Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Small Cap Trader service
LUMINEX CORP (LMNX): Free Stock Analysis Report
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