Adeza Biomedical Rises As Company Reports Inline 2Q Revenue, Backs Outlook; Analyst Upgrades
Shares of Adeza Biomedical Corp. jumped Friday after the maker of reproductive health care products reported second-quarter revenue that was inline with expectations, backed its sales outlook for the year, and one analyst upgraded the company.
Adeza shares gained $1.48, or 9.9 percent, to $16.43 in afternoon trading on the Nasdaq at nearly double their average volume. Earlier in the session the stock, which has traded between $12.61 and $23.35 over the past 52 weeks, climbed as much as 14.6 percent to $17.13.
Net income fell to $537,000, or 3 cents per share, from $1.8 million, or 10 cents per share, a year ago. Analysts surveyed by Thomson Financial expected higher earnings per share of 5 cents.
Revenue rose 23 percent to $13 million -- in line with analysts' estimates -- from $10.6 million last year.
The Sunnyvale, Calif.-based company reiterated its revenue guidance for the year of $54 million to $57 million, above the Street's projection of $53 million.
Rodman & Renshaw analyst Suraj Kalia upgraded the stock to "Market Outperform" from "Market Perform" and assigned a price target of $22, based on the company's revenue results and the reaffirmation of its outlook. Kalia said the Street had been expecting a soft quarter, and that revenue is the more important metric for the company because many regard it as a takeover candidate.
"Earnings is a crapshoot right now," Kalia said in an interview. "I take it with a grain of salt."
Kalia raised his revenue estimates to $14.3 million from $13.7 million for the third quarter, and to $15.9 million from $15.2 million for fourth quarter.
The analyst said that possible revenue for the premature birth prevention drug Gestiva was not factored into estimates. The Food and Drug Administration is due to respond to the company's drug application by Oct. 20.
Analysts estimate revenue of $13.9 million and $15 million for the third and fourth quarter, respectively.
Shares of Adeza Biomedical Corp. jumped Friday after the maker of reproductive health care products reported second-quarter revenue that was inline with expectations, backed its sales outlook for the year, and one analyst upgraded the company.
Adeza shares gained $1.48, or 9.9 percent, to $16.43 in afternoon trading on the Nasdaq at nearly double their average volume. Earlier in the session the stock, which has traded between $12.61 and $23.35 over the past 52 weeks, climbed as much as 14.6 percent to $17.13.
Net income fell to $537,000, or 3 cents per share, from $1.8 million, or 10 cents per share, a year ago. Analysts surveyed by Thomson Financial expected higher earnings per share of 5 cents.
Revenue rose 23 percent to $13 million -- in line with analysts' estimates -- from $10.6 million last year.
The Sunnyvale, Calif.-based company reiterated its revenue guidance for the year of $54 million to $57 million, above the Street's projection of $53 million.
Rodman & Renshaw analyst Suraj Kalia upgraded the stock to "Market Outperform" from "Market Perform" and assigned a price target of $22, based on the company's revenue results and the reaffirmation of its outlook. Kalia said the Street had been expecting a soft quarter, and that revenue is the more important metric for the company because many regard it as a takeover candidate.
"Earnings is a crapshoot right now," Kalia said in an interview. "I take it with a grain of salt."
Kalia raised his revenue estimates to $14.3 million from $13.7 million for the third quarter, and to $15.9 million from $15.2 million for fourth quarter.
The analyst said that possible revenue for the premature birth prevention drug Gestiva was not factored into estimates. The Food and Drug Administration is due to respond to the company's drug application by Oct. 20.
Analysts estimate revenue of $13.9 million and $15 million for the third and fourth quarter, respectively.
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