Martek Bio Up 14%; 1Q Rev Guidance $17.5M-$20M-A.Harkness
By Amy Braunschweiger / DOW JONES NEWSWIRES
Martek Biosciences Corp.'s (MATK) shares jumped 14.5% Friday after the company achieved profitability for the first time, and said it expects to kick off its next fiscal year in with solid revenue growth. "As a newly profitable company, the universe of potential investors increases and, in our view, the stock should benefit accordingly," said Scott Van Winkle, an analyst with Adams Harkness & Hill.
Martek, a Columbia, Md., company that sells ingredients for baby formulas and nutritional supplements, said said it earned 2 cents a share in its fiscal fourth quarter ended Oct. 31, compared with a year-earlier loss of 18 cents a share. Revenue for the latest period came to $15.1 million versus $5.7 million a year earlier.
Company officials later said in a conference call they expects the company to generate first-quarter revenue of between $17.5 million and $20 million, according to Adams Harkness Hill. Van Winkle, set a 3 cents-a-share earnings target on $18.5 million in revenue for the period, which is the first quarter of fiscal year 2003 for Martek.
Shares of Martek recently traded at $23.45, up 4.3%, or $2.93, on volume of 759,229 shares. Average daily turnover is 206,270 shares.
However, Van Winkle cut his 2003 expectations for Martek's earnings because his previous views included new business, while Martek's excluded new business.
"We are not to concerned by the change," Van Winkle said.
The company expects fiscal 2003 untaxed earnings between 39 cents and 59 cents a share on revenue of $75 million to $100 million. Van Winkle cut his 2003 expectations to fully-taxed earnings of 35 cents a share on revenue of $92 million from earnings of 50 cents a share on revenue of $110 million.
Because of the lower estimates, Van Winkle also cut his price target on the company's stock to $30 from $34 a share.
Adams Harkness has a banking relationship with Martek, but Van Winkle doesn't own any of the company's shares. |
