Shares Martek Biosciences Corp. (Nasdaq: MATK), which makes omega-3 oils from algae, rose yesterday after a stronger-than-expected Q4 report and forecasting improved performance for 2007. Martek posted $67.2 million in sales, exceeding analyst expectations of $65.2 million. Martek earned $17.8 million (55 cents per share) for the full year ending Oct. 31 – a rise of 16.5% from the previous year. Revenue rose 25.5% to $255.8 million.
Company guidance for Q1 2007 is a profit of 11-14 cents per share on revenue ranging between $66 million to $69 million. Martek says it’s planning to launch 10-15 new products in 2007.
The stock is listed as “stock of the week” in Forbes. The stock, which hit $70 in 2005, has been trading in the $20s for the past two years -a real loser.
The company has been faced with challenges in balancing product supply with customer orders. The company faces enormous market opportunities and is widely believed to be a stock with great upside potential for those with patience.
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