Lab-testing firm BioReference Labs
What analysts say:
- Buy, sell, or waffle? Three analysts follow BioReference Labs; one is bullish, while two are on the fence with hold ratings. The Motley Fool CAPS community gives the company a favorable five-star rating (out of five).
- Revenue. Analysts are projecting $60.8 million in third-quarter sales, or about 24% above last year's sales amount.
- Earnings. Analysts expect earnings of $0.28, or a penny above last year's $0.27, in quarterly earnings.
What management says:
Back when BioReference Labs reported second-quarter results, management said it would be difficult to grow as fast as the company has historically, but estimated full-year projections would "approach" 20% sales growth and operating income expansion "should exceed 30%."
What management does:
BioReference Labs is a fraction of the size of archrivals Quest Diagnostics
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All data courtesy of Capital IQ, a division of Standard & Poor's. Data reflects trailing-12-month performance for the quarters ended in the named months.
One Fool says:
Scale matters in the industry, which benefits Quest and LabCorp because they can achieve economies of scale by spreading more volume over a fixed facility base. Also, a national platform helps them win large contracts with managed-care giants such as UnitedHealth
What BioReference Labs lacks in clout, it can make up for investors by growing faster. A smaller installed base means that new physician and other contracts have a more significant effect on the top and bottom lines. Plus, it has yet to significantly move outside of the New York metropolitan area, and management recently said it intends to expand "focused testing markets throughout the country."
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