On Nov 14, 2014, Zacks Investment Research upgraded Affymetrix Inc. (NASDAQ:AFFX)) to a Zacks Rank #1 (Strong Buy). Positive estimate revisions owing to impressive third quarter results and a raised guidance primarily drove the upside.
Why the Upgrade?
Impressive third quarter results, positive guidance revision, new products, accretive acquisitions and partnerships were the primary reasons justifying the upgrade.
In the recently concluded third quarter, both earnings and revenues beat the respective Zacks Consensus Estimate. Most importantly, earnings surged a significant 60% from the year-ago quarter. This marked the sixth consecutive earnings beat for the company after a period of persistent losses.
Affymetrix’s restructuring plan aimed at diversifying revenues by focusing on high-growth markets is finally paying off as demonstrated by its stellar bottom-line growth.
We are encouraged by the company’s robust third-quarter adjusted performance which prompted a higher revenue and EBITDA guidance for 2014. Despite a tight academic funding environment, new products and acquisitions along with accretive agreements should propel growth going forward.
Estimate Revisions
The Zacks Consensus Estimate for fiscal 2014 have surged approximately 39% (7 cents) to 25 cents per share over the last 30 days. This represents year-over-year growth of 150%. Likewise, for fiscal 2015, the Zacks Consensus Estimate jumped 35% (7 cents) to 27 cents per share over the same time frame.
Other Stocks to Consider
One may also consider some other players in the industry that look attractive at current levels. These include AMAG Pharmaceuticals (NASDAQ:AMAG)), ANI Pharmaceuticals (NASDAQ:ANIP) and Biogen Idec (NASDAQ:BIIB). All the three stocks carry the same Zacks Rank as Affymetrix.