Why ABAXIS?
profile:
Abaxis manufactures point-of-care blood analyzers which provide clinicians with rapid blood-constituent measurements for both humans and animals. The analyzers are designed to be portable, require minimal training, provide on-the-spot results, and offer built-in quality control and calibration. The analyzers come with the reagent discs required to perform several of the most common blood tests.
1. Business model that is truly starting to pay off: Gilettes razor/razorblade with a healthy margin.
I might be sticking my head out here, but i would be surprised if Quarterly earnings for the three months ended 31 dec 2006 is below .30$ - last Q was .09
1. Analyzer sales are increasing rapidly with new sales org, channels. Piccolo units sales were up 110% from last Q, Vetscan sales were up 50%.
2. Analyzer disc sales will follow with more units out. Sales of discs - consumables - requires minimal selling cost. Margins on discs currently 61%.
3. Solid balance sheet -no debt and 28.5 M$ in cash - not bad considering Market Cap: 404M$
4. Factory utilization is only 18% which indicates improving gross margin with increasing volume.
5. Forward P/E is currently 40 - high but considering balance sheet and risk not that high.
6. Analyst estimates for EPS next Q is .12, sticking my head out here, my guess is .16 for next Q (Q1 2006) and then increasing to somewhere between .30 and .45 for Q4 2006. The .16 estimate is not that optimistic considering royalties that are paid bi-annually and are due for next Q resulting in EPS increase about 3 cents giving .12 EPS everything else being equal to last Q. Seasonality and military sales should take EPS to .16 without even counting for sales growth in general.
Abaxis sure has had a nice run since 7$ a year ago. I have been trading it since 10.60 and it has been one of my best stocks. After last Q's CC the only remaining questing marks were straightened out: Piccolo sales were an issue - not any more,
My 12 month target price is 65$ calculated on current P/E. ABAX is currently trading @ 20$.
just my 2 cents....
Can't make a pick without posting a chart can u? ;)
This log chart shows a nice ascending trendline. it is climbing at a pace of 2.1% per week. I like trendlines. I wouldn't expect any stock to obey to a trendline for a year or more, but when i drew this trendline i noticed that it happens to support my fundamental target:
The trendline will be at 56$ in a year, upper end of upchannel is very close to my target price of 65$
Well ..... I like it ;D ;D ;D ;D ;D ;D ;D
Yessssss! The stock has an appealing chart as it bounced off the upward trendline last week. To add to everything you mentioned, nextmove, it is also an IBD favorite, having been in the top 20 of the IBD 100 this past week and getting a lot of print on their stocks of the day and week in review charts.
It just hit a new high on 5xadv. It may pull back a little to form a handle, but the future for this one looks very bright. I just bought it last week (3/16). So I like it too!
http://www.3stocksonfire.org/trading/index.php?topic=4574.15
Good find!
just an update with a chart
Thread already started... http://www.3stocksonfire.org/trading/index.php?topic=3281.0
Quote from: calven on March 21, 2006, 10:15:55 PM
Thread already started
This is the 'Long Term Picks' Section, where members are encouraged to suggest long term picks. My intention by posting here is to bring attention to ABAX as such. Hope this is in line with the intentions of this section. If not - I will happily continue updating ABAX in the 'Stock picks section'
P.S. Calven - I am aware of the 'Stocks Picks' ABAX thread http://www.3stocksonfire.org/trading/index.php?topic=3281.msg43036#msg43036- You started that thread after I brought ABAX earnings to your attention in 3SF chat. Some credit would have been appreiciated. ;)
ABAX hit 26$ yesterday, Followed by heavy profit taking. The march 20 gap (22.79 to 23.8) was almost filled. At 2:36 pm some nice news was released. As news states price for license was not mentioned, I guess we will have to wait for next CC to find out. Just for comparison - I think I recall from last earnings CC that the other Royalty license ABAX already has, brings in something like 1.4 M$ annually. This translates into EPS increase of 7 cents per share annually- at current EPS it translate to 3$ share increase to share price. Then of course we don't know the number yet. I guess this is what stopped the selloff. Today will be interesting.
Tuesday March 21, 2:36 pm ET
Abaxis Inc. said Tuesday it licensed some of its patented technology to French diagnostic equipment maker bioMerieux SA.
Union City-based Abaxis (NASDAQ: ABAX - News) didn't say how much bioMerieux paid for the rights to lyophilization technology, used in manufacturing reagents.
Lyophilization involves freeze drying of small quantities of reagents.
Kenneth Aron, vice president of research and development at Abaxis, said the deal shows that his company's technology is becoming a standard in the industry. He said Abaxis will keep selling licenses in fields that don't compete with its core business.
Earnings tomorrow. Trading @ 26.50, making new highs. ;D
SO, should I stay or should I go?
Sold WIRE b4 earnings and it jumped 4
kept AMTD and it dropped 2+.
I like the prospects for the future and I think the market is growing.
Well, who can tell whether it will breakout above 26.50 or sell off a dollar or so before earnings are released. CC is scheduled for 4.15 tomorrow, if I recall correctly earnings were release after market close the day before CC. My own estimate for EPS is still 0.16 vs analysts 0.11 - So I'll hold as long as I'm not proven wrong. GL
Abaxis Reports Record Sales for the Fourth Quarter and Record Financial Performance for Fiscal 2006
Thursday April 27, 4:00 pm ET
UNION CITY, Calif., April 27 /PRNewswire-FirstCall/ -- ABAXIS, Inc. (Nasdaq: ABAX - News), a medical products company manufacturing point-of-care blood analysis systems, today reported financial results for the fourth quarter and the fiscal year ended March 31, 2006.
Highlights for the fourth quarter and full-year of fiscal 2006 include:
-- Quarterly revenues: $19.8 million, up 43% year-over-year and annual
revenues of $68.9 million, up 31% year-over-year.
-- Quarterly diluted EPS: $0.11 versus $0.06 in the same period last
year.
-- Annual diluted EPS: $0.35 compared to $0.22 in the previous fiscal
year.
-- Quarterly operating income of $2.9 million, up 85% year-over-year and
annual operating income of $10.7 million, up 51% year-over-year.
-- Quarterly total reagent disc sales of 959,000 units, compared to
658,000 units in the same period last year, up 46% year-over-year.
-- Quarterly medical sales of $3.0 million, up 51% year-over-year.
-- Quarterly medical sales in the United States, excluding sales to the
U.S. Military: $2.2 million, up 131% year-over-year.
-- Quarterly medical reagent disc sales in the United States, excluding
sales to the U.S. Military, of 126,000 units, compared to 53,000 units
in the same period last year, up 138% year-over-year.
-- Quarterly veterinary reagent disc sales of 778,000 units, compared to
568,000 units in the same period last year, up 37% year-over-year.
-- Annual medical reagent disc sales in the United States, excluding sales
to the U.S. Military increased 101% to 363,000 units, compared to
181,000 units year-over-year.
-- Cash, cash equivalents and short-term investments as of March 31, 2006:
$30.5 million, up 35% year-over-year.
Quarterly Results: For the fourth fiscal quarter ended March 31, 2006, Abaxis reported revenues of $19.8 million, as compared with revenues of $13.8 million for the comparable period last year, an increase of 43 percent. Instrument revenue, reagent disc and hematology reagent revenue increased by $5.1 million or 39 percent over the same period last year. The Company reported net income attributable to common shareholders of $2.3 million, compared to $1.3 million for the same period last year. The Company's effective tax rate in the quarter ended March 31, 2006 was 31 percent, compared to 21 percent for the same period last year. The Company reported diluted net income per share of $0.11 (calculated based on 21,721,000 shares), compared to $0.06 per share (calculated based on 21,411,000 shares) for the same period last year.
Twelve Months Results: For the twelve-month period ended March 31, 2006, Abaxis reported total revenues of $68.9 million, compared with revenues of $52.8 million for the comparable period last year, an increase of 31 percent. During the twelve-month period, the Company sold 3.4 million units of reagent discs, up 28 percent compared to the same period last year. Net income attributable to common shareholders for the twelve-month period ended March 31, 2006 was $7.5 million, as compared to $4.9 million for the same period last year, an increase of 54 percent. The Company reported diluted net income per share of $0.35 (calculated based on 21,492,000 shares), compared to $0.22 per share (calculated based on 21,662,000 shares) for the same period last year.
Other Reported Information: Reagent disc and hematology reagent revenue for the fourth fiscal quarter was $11.7 million, up 44 percent over the $8.2 million reported in the same period last year. During the quarter, the Company sold 959,000 medical and veterinary reagent discs compared to 658,000 medical and veterinary reagent discs sold during the same period last year. The Company ended the quarter with $30.5 million in cash, cash equivalents and short-term investments.
Clint Severson, chairman and CEO of Abaxis, said, "Fiscal year 2006 was characterized by strong operating performance in both our medical and veterinary markets, with revenue increases of 35% and 26% respectively. During fiscal 2006 we commenced transitioning our sales and marketing functions away from direct sales and more toward selected distributors. This strategic shift was particularly beneficial on the medical side in the United States, with sales to non-military customers increasing by 110%. On the veterinary side, we introduced our new VetScan VS2, which we believe will help to capture an increasingly larger share of this market going forward. Our international business grew at a healthy rate posting a 32% increase during the fiscal year. Approximately 68% of our total annual revenues for the year are recurring revenues. Overall we sold more than 3 million reagent discs during the year and we completed our 14th consecutive profitable quarter.
Mr. Severson said, "The entire Abaxis team turned in a very strong operational performance in fiscal year 2006. While we are very pleased with the accomplishments of the past fiscal year, we remain dedicated to expand market share in all of the sectors in which we compete. With a strong cash position and no long-term debt, we are very well positioned to continue to build on our success in the years to come."
Abaxis also announced today the promotion of Martin Mulroy to Vice President, Veterinary Sales and Marketing for North America. Mr. Mulroy first joined Abaxis in November 1997 as Northeast Regional Sales Manager after a 14-year career in point of care in-vitro diagnostics in the medical market, including rapid tests, chemistry, hematology and immunology. Mr. Mulroy was promoted to Eastern Area Director of Sales in January 1999, and was promoted to National Sales Director for the domestic veterinary business unit in January 2005. He currently directs a staff of 4 Area Directors and 28 Regional Managers. Mr. Mulroy holds a Bachelor of Science in Health Policy and Management from Providence College, Providence Rhode Island.
Clint Severson said, "Marty is a proven asset and committed, key employee. He has broad knowledge of point of care diagnostics, the veterinary marketplace, veterinary sales and marketing, and channel management. We look forward to his continued contributions and leadership".
AP
Abaxis Shares Rise on 2Q Revenue Results
Thursday October 25, 2:23 pm ET
SunTrust Analyst Says Improved Device Performance Helps Abaxis' Second-Quarter Results
NEW YORK (AP) -- Shares of Abaxis Inc. rose in afternoon trading Thursday, as an analyst said the blood analysis systems maker's earnings showed the effect of improved device performance and investments in direct-selling.
Shares added $3.97, or 16.4 percent, to $28.16 in afternoon trading, after earlier in the session setting an all-time high of $28.32.
Second-quarter profit rose 37 percent to $2.9 million, or 13 cents per share, from $2.1 million, or 10 cents per share, in the year-ago quarter.
Revenue rose 20 percent to $25.2 million from $21 million in the year-ago quarter.
Earnings-per-share results missed analysts' average estimate of 14 cents per share, while revenue topped the $23.7 million projection, according to Thomson Financial.
SunTrust Robinson Humphrey analyst Jonathan Block said veterinary and medical revenue both beat his segment expectations.
In the company's medical business, the analyst said improvements in manufacturing has led to fewer product failures, which gives sales staff more ability to focus on growing the business.
Sales and marketing spending came in higher than he expected due to new staff hires, which weighed on profit. But Block expects this additional spending -- which aims to improve levels of direct-selling to veterinarians -- will reap profit improvements beginning in 2008.
Block, who reiterated a "Buy" rating and $28 target price on shares, said he expects shares to rise within the next few days, as the company announces a new Japanese distribution partner.
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Thread, failed to be kept updated... :(
Nice chart, stochastic turning up.
Trending higher, not a screen pick but a high grower at support.
52wk Range: 16.94 - 27.00
Volume: 1,441,113
Avg Vol (3m): 251,853
Market Cap: 612.11M
P/E (ttm): 58.41
EPS (ttm): 0.49
Technicals
Record Price High
Close Below the 13-day MA
Record Price Break Out
Percentage Gainer
Price Gainer
Last Price Quote is:
18.07%above 13-day MA
26.60%above 50-day MA
RS Rating: 98
Fundamentals
Key Data:
Market Cap (M): $501.24
P/E Ratio: 47.71
PEG Ratio: 1.935
Next Earnings: 01/24/2008
Last Analyst Rating: Buy
on watch.