Amid a higher core profit caused by rising clinical sales, Cepheid (CPHD) experienced a fourth quarter loss on its one-time patent-expiration charge. Nevertheless, the future looks bright as the company, which deals with biological testing systems, saw its shares increasing value by 20 to reach $41 following the projected revenue announcement. Exceeding expectations, the company projected a revenue hovering between 55 and 60 cents per share, comprising between $333 million and $347 million. Estimates by Thomson Reuters placed revenue at 39 cents per share and totaling $333 million.
The $41 figure was a major breakthrough, as the stock surpassed the $40 resistance line, which acted as a no-go on two occasions during 2011. Technical analysis suppose that it should now act as a support line, indicating the strong uptrend of the stock.
Cepheid conducts molecular tests for the health care industry which aims to simplify normally complex, time-consuming procedures. The company’s financials have improved in the last several quarters with its clinical business earning more than its testing systems.