Caliper Life Sciences (CALP: 6.36 0.00 0.00%) recently announced preliminary financial results that breathed some life into the stock. Estimates are moving higher as a result.
CALP currently has a Zacks #1 Rank (Strong Buy) and continues to expand into new markets.
Company Description
Caliper Life Sciences develops advanced instruments and outsourcing services for pharmaceutical, biotech and other research institutions and companies.
Positive Announcement
On Jan 13 Caliper released preliminary fourth-quarter results that made investors quite happy. Revenue came in at $36 million, which brings the full-year mark to $124 million. That is a 10% organic growth rate.
Caliper's gross margin expanded by over 800 bps, allowing them to surpass goals for 2010. The company raised its 2011 guidance and is now expecting the top line to improve 12-20%.
Estimates Move Higher
Both analysts polled by Zacks raised their full-year estimates for this year on the news. Caliper is expected to break even this year; up from a 9-cent loss they were expecting 3 months ago.
Next year's forecasts are averaging 3 cents, up from a 2-cent loss. While the earnings figures are not impressive on the surface, the upward momentum is encouraging. In 2009 Caliper lose 12 cents.
M&A Activity
On Dec 21 Caliper said it completed a previously announce deal to acquire Cambridge Research & Instrumentation, Inc for $20 million in cash, assumed debt and common stock. The move will help Caliper break into the tissue imaging and digital pathology market.
The Chart
The recent news and raised guidance gave shares of CALP a jolt. There is a level of resistance here, but given the upward estimate revisions there is a good chance that we see a new high soon.
Bill Wilton is the Aggressive Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Small Cap Trader service
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