Sequenom Meets on the Top Line, Misses Where it Counts

Seth Jayson, The Motley Fool
Updated

Sequenom (NAS: SQNM) reported earnings on May 9. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended March 31 (Q1), Sequenom met expectations on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue increased significantly. GAAP loss per share increased.


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

Revenue details
 Sequenom notched revenue of $38.5 million. The nine analysts polled by S&P Capital IQ predicted sales of $38.3 million on the same basis. GAAP reported sales were much higher than the prior-year quarter's $14.9 million.

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 -$0.26. The nine earnings estimates compiled by S&P Capital IQ predicted -$0.23 per share. GAAP EPS were -$0.26 for Q1 against -$0.22 per share for the prior-year quarter.

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 36.3%, 20 basis points worse than the prior-year quarter. Operating margin was -70.2%, much better than the prior-year quarter. Net margin was -76.3%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
 Next quarter's average estimate for revenue is $44.3 million. On the bottom line, the average EPS estimate is -$0.22.

Next year's average estimate for revenue is $190.9 million. The average EPS estimate is -$0.78.

Investor sentiment
 The stock has a three-star rating (out of five) at Motley Fool CAPS, with 657 members out of 716 rating the stock outperform, and 59 members rating it underperform. Among 154 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 137 give Sequenom a green thumbs-up, and 17 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 $7.00.

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The article Sequenom Meets on the Top Line, Misses Where it Counts originally appeared on Fool.com.

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. The Motley Fool has no position in any of the stocks mentioned. 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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