Martek Biosciences Corporation (MATK) recently posted a solid fiscal first quarter and saw its share price gain upward momentum following the release of the results. Revenues, which increased by 18% year-over-year, were a record $82.9 million. Analysts lifted their earnings forecasts in response the strong quarter.
Full Analysis
Martek Biosciences Corporation engages in the development and commercialization of novel products from microalgae, fungi, and other microbes primarily in the United States. The company offers life'sDHA, a vegetarian source of the omega-3 fatty acid DHA for use in infant formula, perinatal products, foods and beverages, and dietary supplements; and life'sARA, a vegetarian source of the omega-6 fatty acid ARA for use in infant formula.
Its products include nutritional oils used in infant formula, nutritional supplements, and food and beverage fortification ingredients. The company's nutritional oils consist of fatty acid components, such as docosahexaenoic acid (DHA) and arachidonic acid (ARA). DHA and ARA enhance mental and visual development in infants, as well as enable proper functioning of brain and reduce the risk of cardiovascular disease.
As was the case when Martek posted fiscal fourth-quarter results, shares of MATK jumped on positive first-quarter numbers.
The company’s first-quarter report was released last week, which included record revenues of $82.9 million, an 18% increase on a year-over-year basis. Net income was $8.7 million, which soared past the previous year’s $2.8 million. On an earnings per share basis, the company posted 26 cents, which topped the consensus estimate of 22 cents.
Commenting on the quarter, Chief Executive Officer Steve Dubin said, "The results for the first quarter show a solid start to fiscal 2008 and reflect our continued execution of our business plan. During the first quarter, Martek increased overall and non-infant formula revenues and achieved margin, earnings and cash flow growth. Furthermore, several new customers launched products with life'sDHA(TM) and an existing customer included our nutritional oils in an expanded number of their products. These new launches, customer launches to date in the second quarter and the success of a number of products that have been introduced by some of our largest customers should bode well for growth in the non-infant formula categories in coming quarters."
The biotech issued a second-quarter guidance that ranges between 24 cents and 26 cents per share. Analysts responded by increasing their forecasts. Three out of four covering analysts upped second-quarter expectations from last week’s 23 cents per share to 25 cents. For the full year, three out of five analysts lifted last week’s projections of 94 cents per share to $1.01.
The company’s price/book of 1.7 translates into an appealing valuation and comes in well below the industry’s average of 2.6.
Content Courtesy: Zacks Investment Research
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Wednesday, March 12, 2008
MATK - Martek Biosciences - Three out of four covering analysts upped second-quarter expectations from last week’s
Friday, January 25, 2008
MATK - Martek Biosciences - Four out of the five covering analysts have raised their numbers over the past month
Martek Biosciences is getting healthy off of its results. The company increased penetration in international infant formula markets, expanded the use of DHA outside of infant formula and improved our gross margin and profitability. A look at the estimate picture reveals good health. Over the past month, current year earnings estimates have increased 10 cents to 94 cents per share.
Full Analysis
Martek Biosciences Corporation (MATK) engages in the development and commercialization of novel products from microalgae, fungi, and other microbes primarily in the United States. The company offers life'sDHA, a vegetarian source of the omega-3 fatty acid DHA for use in infant formula, perinatal products, foods and beverages, and dietary supplements; and life'sARA, a vegetarian source of the omega-6 fatty acid ARA for use in infant formula.
Its products include nutritional oils used in infant formula, nutritional supplements, and food and beverage fortification ingredients. The company's nutritional oils consist of fatty acid components, such as docosahexaenoic acid (DHA) and arachidonic acid (ARA). DHA and ARA enhance mental and visual development in infants, as well as enable proper functioning of brain and reduce the risk of cardiovascular disease.
In mid-December the stock soared after it said fourth-quarter profit surged to $18.3 million from $102,000 the year before, and the company guided for first-quarter earnings per share of 21 cents to 23 cents, compared with the average estimate of 17 cents from analysts.
Commenting on the quarter, Chief Executive Officer Steve Dubin said, "Our results in this year's fourth quarter confirm that our strategies are on target and demonstrate the progress we have made against our key focus areas in 2007. During the year, we increased penetration in international infant formula markets, expanded the use of DHA outside of infant formula and improved our gross margin and profitability. We also continued to focus on developing new products to support our future growth. I believe that we are well-positioned to continue growing revenues and profits in the year ahead."
Product sales in the fourth quarter increased 24% to $79.0 million and contract manufacturing sales totaled $3.0 million compared with $3.4 million in contract manufacturing sales a year ago. The decline in fourth quarter contract manufacturing revenues resulted from the Company's decision to narrow its contract manufacturing services to include only products with reasonable profit margins or those that the Company expects could have a strategic fit in the future.
A look at the estimate picture reveals good health. Over the past month, current year earnings estimates have increased 10 cents to 94 cents per share. This would represent over 40% earnings growth over last year. Four out of the five covering analysts have raised their numbers over the past month.
The valuations are attractive as well. It currently sports a price/book ratio of 2.1, well below the industry average of 3.2. It's net margin of 11% is also much better than its industry. The stock is currently trading at about 32x next year's estimates.
Content Courtesy: Zacks Investment Research
#1 Ranked Stocks Highlight Archive
To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions.
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Monday, January 14, 2008
MATK - Martek Biosciences - Four out of the five covering analysts have raised their numbers over the past month
Martek Biosciences is getting healthy off of its results. The company increased penetration in international infant formula markets, expanded the use of DHA outside of infant formula and improved our gross margin and profitability. A look at the estimate picture reveals good health. Over the past month, current year earnings estimates have increased 10 cents to 94 cents per share.
Full Analysis
Martek Biosciences Corporation (MATK) engages in the development and commercialization of novel products from microalgae, fungi, and other microbes primarily in the United States. The company offers life'sDHA, a vegetarian source of the omega-3 fatty acid DHA for use in infant formula, perinatal products, foods and beverages, and dietary supplements; and life'sARA, a vegetarian source of the omega-6 fatty acid ARA for use in infant formula.
Its products include nutritional oils used in infant formula, nutritional supplements, and food and beverage fortification ingredients. The company's nutritional oils consist of fatty acid components, such as docosahexaenoic acid (DHA) and arachidonic acid (ARA). DHA and ARA enhance mental and visual development in infants, as well as enable proper functioning of brain and reduce the risk of cardiovascular disease.
In mid-December the stock soared after it said fourth-quarter profit surged to $18.3 million from $102,000 the year before, and the company guided for first-quarter earnings per share of 21 cents to 23 cents, compared with the average estimate of 17 cents from analysts.
Commenting on the quarter, Chief Executive Officer Steve Dubin said, "Our results in this year's fourth quarter confirm that our strategies are on target and demonstrate the progress we have made against our key focus areas in 2007. During the year, we increased penetration in international infant formula markets, expanded the use of DHA outside of infant formula and improved our gross margin and profitability. We also continued to focus on developing new products to support our future growth. I believe that we are well-positioned to continue growing revenues and profits in the year ahead."
Product sales in the fourth quarter increased 24% to $79.0 million and contract manufacturing sales totaled $3.0 million compared with $3.4 million in contract manufacturing sales a year ago. The decline in fourth quarter contract manufacturing revenues resulted from the Company's decision to narrow its contract manufacturing services to include only products with reasonable profit margins or those that the Company expects could have a strategic fit in the future.
A look at the estimate picture reveals good health. Over the past month, current year earnings estimates have increased 10 cents to 94 cents per share. This would represent over 40% earnings growth over last year. Four out of the five covering analysts have raised their numbers over the past month.
The valuations are attractive as well. It currently sports a price/book ratio of 2.1, well below the industry average of 3.2. It's net margin of 11% is also much better than its industry. The stock is currently trading at about 32x next year's estimates.
Content Courtesy: Zacks Investment Research
#1 Ranked Stocks Highlight Archive
To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions.
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