Luminex Beats Up on Analysts Yet Again

Luminex (Nasdaq: LMNX  ) reported earnings on Feb. 6. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Luminex beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded significantly, and GAAP earnings per share improved.

Margins dropped across the board.

Revenue details
Luminex booked revenue of $45.6 million. The 11 analysts polled by S&P Capital IQ hoped for revenue of $43.7 million. Sales were 16% higher than the prior-year quarter's $33.9 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
EPS came in at $0.08. The 10 earnings estimates compiled by S&P Capital IQ predicted $0.06 per share. GAAP EPS of $0.08 for Q3 were 14% higher than the prior-year quarter's $0.07 per share.

Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 67.9%, 150 basis points worse than the prior-year quarter. Operating margin was 8.2%, 410 basis points worse than the prior-year quarter. Net margin was 7.2%, 60 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $46.6 million. On the bottom line, the average EPS estimate is $0.07.

Next year's average estimate for revenue is $183.1 million. The average EPS estimate is $0.38.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 92 members rating the stock outperform and 12 members rating it underperform. Among 34 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 30 give Luminex a green thumbs-up, and four give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Luminex is outperform, with an average price target of $21.33.

Over the decades, small-cap stocks, like Luminex have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.

• Add Luminex to My Watchlist.