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Cepheid (CPHD) Prospers Internationally, Currency Woes Linger

Zacks Equity Research
Updated

On Aug 31, 2015, we issued an updated research report on Cepheid CPHD – a California-based molecular diagnostics company.

Cepheid reported an impressive second-quarter 2015 financial performance exceeding the Zacks Consensus Estimate on both the top and bottom-line fronts. However, on a year-over-year basis, the company delivered mixed results as revenues stole the show but the bottom line staggered considerably.

Currently, in order to exploit its opportunity in the molecular diagnostics space, Cepheid is expanding its international footprint. Evidently, Cepheid placed 227 commercial systems overseas during the second quarter.

Cepheid also has a strategic interest to foray into emerging countries in Asia and Latin America and in particular, the high-focus Japanese market. Cepheid placed a total of 312 GeneXpert systems in High Burden Developing Countries (HBDC).

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Moreover, Cepheid witnessed a quarter of strong menu execution with the CE-IVD releases of HIV qualitative and HCV Viral Load, the World Health Organization's inclusion of the company’s Ebola test on its procurement list and the submission of the CLIA-waived Xpert Flu/RSV test to the FDA. We believe the company’s proven progress in test menu expansion initiatives will facilitate its growth further in the diagnostics market.

On the flip side, unfavorable currency fluctuations continue to adversely affect the company’s top-line performance on the international front. Also, a highly competitive market and unfavorable lawsuits continue to pose stiff challenges to Cepheid.

Currently, Cepheid carries a Zacks Rank #3 (Hold).

Key Picks in the Sector

Some stocks that warrant a look in the medical instruments space are Masimo Corp. MASI, Thoratec Corp. THOR and Cyberonics Inc. CYBX. All these stocks sport a Zacks Rank #1 (Strong Buy).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
CEPHEID INC (CPHD): Free Stock Analysis Report
 
THORATEC CORP (THOR): Free Stock Analysis Report
 
MASIMO CORP (MASI): Free Stock Analysis Report
 
CYBERONICS INC (CYBX): Free Stock Analysis Report
 
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Zacks Investment Research