Sequenom Meets on Revenues, Misses on EPS

Seth Jayson, The Motley Fool
Updated

Sequenom (NAS: SQNM) reported earnings yesterday. Here are the numbers you need to know.

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

Compared to the prior-year quarter, revenue grew and GAAP loss per share shrank.

Gross margins dropped, operating margins shrank, net margins expanded.

Revenue details
Sequenom logged revenue of $15.5 million. The 11 analysts polled by S&P Capital IQ hoped for revenue of $15.7 million on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $13.8 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at -$0.22. The 12 earnings estimates compiled by S&P Capital IQ anticipated -$0.18 per share. GAAP EPS were -$0.22 for Q4 against -$0.27 per share for the prior-year quarter.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 45.6%, 1,680 basis points worse than the prior-year quarter. Operating margin was -141.6%, 2,820 basis points worse than the prior-year quarter. Net margin was -143.2%, 1,690 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $16.4 million. On the bottom line, the average EPS estimate is -$0.18.

Next year's average estimate for revenue is $78.8 million. The average EPS estimate is -$0.68.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 648 members out of 702 rating the stock outperform, and 54 members rating it underperform. Among 160 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 146 give Sequenom a green thumbs-up, and 14 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Sequenom is outperform, with an average price target of $7.03.

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At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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