Auriga Assumes Coverage on Life Technologies (LIFE) at Buy; Q1 Results Review: Headwinds About As Expected
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Price: $34.02 -2.24%
Rating Summary:
15 Buy, 2 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
15 Buy, 2 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Auriga assumes coverage on Life Technologies (NASDAQ: LIFE) with a Buy. PT $63.
Auriga analyst says, "Yesterday, LIFE reported 1Q11 revenues of $897MM (+1%; 0% organic,-1% F/X, 2% acquisitions) and non-GAAP EPS of $0.85 (-2% Y/Y), Revenues fell $3MM short of our estimate ($900MM) and consensus ($906MM), but EPS was in line with consensus. Organic revenue growth was hampered by difficult Y/Y comparisons (10% in 1Q10 due to the Japanese Police Order and U.S. stimulus), and the events in Japan which impacted both consumable sales and delay shipment of several key products. LIFE saw continued strong growth in Cell Systems (11%), as its products are spec'd into several new therapeutics. LIFE had telegraphed the difficult quarter, and estimates had been coming in prior to the release. However, we clearly did not moderate our revenue expectations enough. That said, we believe LIFE's product mix is attractive and end market demand remains stable, while several new products should start to ramp in 2H11. As such, we view LIFE's full year guidance for mid-single digit growth as realistic and achievable."
For more ratings news on Life Technologies click here and for the rating history of Life Technologies click here.
Shares of Life Technologies closed at $54.56 yesterday.
Auriga analyst says, "Yesterday, LIFE reported 1Q11 revenues of $897MM (+1%; 0% organic,-1% F/X, 2% acquisitions) and non-GAAP EPS of $0.85 (-2% Y/Y), Revenues fell $3MM short of our estimate ($900MM) and consensus ($906MM), but EPS was in line with consensus. Organic revenue growth was hampered by difficult Y/Y comparisons (10% in 1Q10 due to the Japanese Police Order and U.S. stimulus), and the events in Japan which impacted both consumable sales and delay shipment of several key products. LIFE saw continued strong growth in Cell Systems (11%), as its products are spec'd into several new therapeutics. LIFE had telegraphed the difficult quarter, and estimates had been coming in prior to the release. However, we clearly did not moderate our revenue expectations enough. That said, we believe LIFE's product mix is attractive and end market demand remains stable, while several new products should start to ramp in 2H11. As such, we view LIFE's full year guidance for mid-single digit growth as realistic and achievable."
For more ratings news on Life Technologies click here and for the rating history of Life Technologies click here.
Shares of Life Technologies closed at $54.56 yesterday.
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