Affymetrix Up on 3Q Results, Upgrade
Thursday October 26, 12:09 pm ET
Affymetrix Shares Rise on Better-Than-Expected 3rd-Quarter Results, Analyst Upgrade
NEW YORK (AP) -- Shares of Affymetrix Inc. surged Thursday after the maker of genetic analysis systems and technology posted third-quarter results slightly above Wall Street estimates and one analyst issued an upgrade.
Affymetrix shares gained $3.37, or 14.9 percent, to $26.03 in midday trading on the Nasdaq at more than double their average volume. Shares have traded between $17.50 and $52.44 over the past 52 weeks.
The company posted a loss of 6 cents per share after charges, compared with the consensus estimate of an 8-cent per share loss, according to analysts polled by Thomson Financial. The company also booked revenue of $84.7 million, when analysts had hoped for $80.9 million.
UBS analyst Derik De Bruin said the results were "not pretty" with revenue from certain products coming in lower-than-expected, but upgraded the company's stock to "Neutral" from "Reduce" on the expectation that the business may be hitting a bottom.
De Bruin predicted a greater potential moving forward in the microarray market that Affymetrix serves, and an uptick in company business from a series of deals cut in July following a price cut. The analyst also anticipates that a new product, the 1-chip 500K genotyping array, will sell better than previously expected, and that the company will improve its margins.
Deutsche Bank analyst Ross Muken reiterated his "Hold" rating on the stock, and raised his 2006 projection to a loss of 13 cents from 15 cents, and upped his price target to $20.50 from $19. That implies a 9.5 percent decline from the stock's closing price Wednesday of $22.66.
Muken said in a note that while he expected the stock to be up he remains "very cautious" on the company's prospects and believes the visibility to a turnaround remains "very limited."
Wall Street is looking for an 11-cent per share loss in 2006. |
