Is Life Technologies Likely to Outperform?

With shares of Life Technologies Corporation (NASDAQ:LIFE) trading at around $64.22, is LIFE an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

C = Catalyst for the Stock’s Movement

Q4 EPS came in at $0.63. Excluding items, EPS was $1.11, which was in-line with expectations. Revenue increased 3 percent year-over-year to $999 million, which barely beat expectations. For FY2012, adjusted EPS was $3.98. FY2012 revenue was $3.79 billion. As far as guidance goes, FY2013 EPS is expected to come in between $4.30 and $4.45, excluding items.

Perhaps the most important news is that the strategic review is ongoing and no decisions have been made. However, the board is open to all options, and a sale is possible. Life Technologies stock has seen a significant upward move since buyout rumors began. That’s a plus, but at what point does the company stop being a bargain? Regardless, Reuters recently reported that Thermo Fisher Scientific (NYSE:TMO) and private equity groups were considering a bid.

Now let’s take a look at Life Technologies if a buyout doesn’t come to fruition…