Tag Archives: tmo

Agilent Hits 15-Year High As Q2 Earnings Point To Revived Growth

Shares of scientific-instrument maker Agilent Technologies ( A ) popped to a 15-year high above 45 in early trading Tuesday after the company beat fiscal Q2 estimates and raised guidance late Monday. The 16% earnings growth and 6% top-line growth were the highest since Q1 2012, and a vindication of CEO Michael McMullen’s strategy since he attained his position just over a year ago, according to Evercore ISI analyst Ross Muken. “We see Mike’s vision of superior top-line growth, an inflection in operating margins and improved free cash flow/deployment as a differentiating factor vs. LST (life-science tools) peers going forward,” Muken wrote in a research note, raising his price target to 48 from 43 while affirming a buy rating. Agilent’s peers include Thermo Fisher Scientific ( TMO ) and Danaher ( DHR ). Leerink analyst Dan Leonard raised his price target to 51 from 44 while keeping an outperform rating. He noted that in addition to lifting its organic-growth guidance for this year to 4.5%, the company had offered a glimpse into next year. “Management offered an initial view of fiscal 2017, projecting 4.5% organic revenue growth, and reiterated its commitment to target 22% operating margins,” Leonard wrote. “Assumptions for growth include continued momentum in biopharma and China, which are expected to sustain throughout the second half of 2016 and full-year 2017, and the C&E (chemical & energy) market bottoming out by year-end.” Agilent stock early Tuesday hit its highest point since January 2001, at 45.34, though in afternoon trading it was up just 2.5%, near 44. The move broke the stock out of a consolidation that had been going for over a year. The stock’s Relative Strength and Accumulation/Distribution ratings have both been improving over the last couple of weeks, reaching 82 and B, respectively, both well above average.

Affymetrix Shareholders To Choose Between Origin, Thermo Fisher

Gene-analysis firm Affymetrix ( AFFX ) said Wednesday that there will be a special shareholder meeting Thursday to discuss a new buyout offer from Origin Technologies, in its bid to woo Affymetrix away from Thermo Fisher Scientific ( TMO ). Late Tuesday, Origin Technologies, which was formed by former Affymetrix employees specifically to take over Affymetrix, raised its bid for the company to $17 a share, and increased its reverse termination fee to $100 million. Last week, Origin had offered $16.10 a share for Affymetrix , which the company’s board rejected over the weekend on the grounds that it was funded solely by debt commitments and wouldn’t be enough to cover the “amounts required to be paid in respect of existing shares, employee equity arrangements, existing convertible notes and credit facility, and anticipated transaction expenses, including a termination fee payable to Thermo Fisher Scientific.” On Wednesday, Affymetrix’s leadership reluctantly admitted that the new offer “could reasonably be expected to lead to a superior proposal,” and so the company is legally required to hold a special shareholder meeting, followed by a vote scheduled for March 31. The board still advocated that shareholders stick with the Thermo Fisher deal, which was $14 a share, or $1.3 billion in cash. Affymetrix stock rose 5.2% to 15.11 in the stock market today . Thermo Fisher stock was flat, at 138.82. Image provided by Shutterstock .

Affymetrix Dives After Rejecting $1.5 Billion Origin Offer

Genetic-analysis company Affymetrix ( AFFX ) on Sunday rejected a $1.5 billion, $16.10 a share offer from Origin Technologies, saying it will stick with its planned $14-a-share takeover  by Thermo Fisher Scientific ( TMO ). Affymetrix shares dived 10.3% to 14.35 in morning trade on the stock market today , Shares of Affymetrix hit an eight-year high  Friday on Origin’s offer, soaring 14% to 15.99. Affymetrix has traded at or just above the Thermo Fisher Scientific bid of 14 since Affymetrix agreed to the offer on Jan. 8. Affymetrix said “Origin appears to be a newly-formed shell entity with no assets of which Affymetrix is aware, and whose sole source of funding for the proposed transaction is $1.5 billion in potential debt commitments.” That would be “materially short” of the funds needed to actually complete the deal, said Affymetrix, citing share compensation, a termination fee for Thermo Fisher Scientific and other items. Thermo Fisher agreed with Affymetrix, issuing a statement that it sees its bid as superior. Thermo stock fell 21 cents to 139.79. Origin Technologies was formed by a group of ex-Affymetrix executives with the purpose of buying the company. Origin President Wei Zhou, a former senior vice president at Affymetrix, also started genomics company Centrillion Technology in 2009. Wei and said that Origin has the option of combining with Centrillion after acquiring Affymetrix.