Sequenom (SQNM) Beats Q4 EPS Expectations

Sequenom Inc. (SQNM) is flat to $3.65 in the extended session Wednesday after it reported fiscal results for the fourth quarter.

In its quarterly report, the firm said it earned $0.14 per share, well above the ($0.06) per share analysts were expecting. Revenue rose 12.5% yoy to $36.8 million, but below views for $37.06 million. Gross margin in the period was 53% as compared to gross margin of 32% for Q4’13. Operating income came in at $20 million as compared to a loss of $19.2 million, for the same period in 2013.

For full-year 2014, total revenues were $151.6 million, $32 million, or 27% higher than in fiscal 2013. Net loss from continuing operations improved by 87% to $14.4 million, or $0.12 per share, as compared to $109.6 million, or $0.95 per share for 2013. Sequenom said the improvement in the loss from continuing operations from prior year is due to improved gross margins, reduced operating expenses and a gain on the pooled patents agreement with Illumina.

“2014 was a pivotal year for Sequenom. In addition to growing the business and improving profitability, we completed multiple strategic transactions including the divestiture of the Sequenom Bioscience business unit, the buyout of the patent rights from Isis Innovation, as well as the settlement and pooled patents agreements with Illumina,” said in a statment Bill Welch, CEO of Sequenom, Inc.

On valuation measures, Sequenom Inc. shares, which currently have an average 3-month trading volume of 1.21 million shares, trade with a P/E to growth ratio of (0.51). The median Wall Street price target on the name is $5.00 with a high target of $7.00. Currently ticker boasts 5 ‘Buy’ endorsements, compared to 2 ’Holds’ and no ‘Sell’.

Profitability-wise, SQNM has a t-12 profit and operating margin of (19.01%) and (24.54%), respectively. The $428.37 million market cap company reported $93.9 million in cash vs. $136.26 million in liabilities in its most recent quarter.

SQNM currently prints a one year return of 57.69% and a year-to-date loss of 0.27%.

The chart below shows where the equity has traded over the last 52 weeks.

Sequenom Inc. provides genomic and genetic analysis solutions for the molecular diagnostic and clinical research markets in the United States and internationally. The company was founded in 1994 and is headquartered in San Diego, California.

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