Luminex Corporation LMNX reported first-quarter 2016 adjusted earnings (including stock-based compensation) of 27 cents per share, which comfortably surpassed the Zacks Consensus Estimate of 13 cents. Luminex Corporation - Earnings Surprise | FindTheBest Adjusted earnings surged 36.5% on a year-over-year basis driven by strong top-line growth and operating margin expansion.Revenues increased 9.1% year over year to almost $63 million, which was slightly better than the Zacks Consensus Estimate of $61 million. The year-over-year improvement may be attributed to better system sales and a stellar performance by the company’s assay product portfolio.Adjusted gross margin expanded 150 basis points (bps) on a year-over-year basis to 71.1%, driven by favorable product mix.Research & development (R&D) expenses, as a percentage of revenues, declined 10 basis points (bps) to 17.5%. Selling, general and administrative (SG&A) expenses decreased 140 bps to 32.3% in the reported quarter.Adjusted operating margin expanded 320 bps on a year-over-year basis to 22.4%, driven by higher revenues as well as stringent cost control.Segment DetailsSystem sales jumped 39.5% on a year-over-year basis to $8.3 million. Royalty revenues increased 7.2% on a year-over-year basis to $11.5 million.Consumables sales soared 19.7% to $11.9 million. Luminex’s partner revenues grew 18% year over year, far ahead of its annual growth target range of 6% to 9%, primarily driven by robust demand for the company’s products in the life science markets.Assay revenues increased 6.3% to $27 million, reflecting the successful execution of the company’s molecular diagnostic strategy. Infectious disease assay sales comprised approximately 72% of the total assay sales in the quarter, with genetic testing assays representing 28%.Molecular diagnostic business generated approximately $28 million in revenues driven by 20% growth in Luminex’s infectious disease test portfolio.In the reported quarter, Luminex sold 255 multiplexing analyzers.GuidanceLuminex now expects full-year 2016 revenues in the range of $247--$255 million, up from the previous range of $245–$255 million. Second-quarter 2016 revenues are expected between $60 million and $62 million.Luminex expects consumables revenues to increase in the mid-single digit range for 2016. Royalties are expected to grow in the low single-digits range.Management at Luminex expects assay revenue growth in the mid single-digits range in 2016. The company assumes that LabCorp CF will remain its customer throughout 2016.Luminex continues to expect a couple of million dollar contribution from ARIES in 2016.Zacks Rank & Key PicksCurrently, Luminex carries a Zacks Rank #3 (Hold).Better-ranked stocks in the medical space are Edwards Lifesciences EW, IRadimed Corporation IRMD and Abiomed ABMD. While Edwards Lifesciences and IRadimed sport a Zacks Rank #1 (Strong Buy), Abiomed carries a Zacks Rank #2 (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 LUMINEX CORP (LMNX): Free Stock Analysis Report ABIOMED INC (ABMD): Free Stock Analysis Report IRADIMED CORP (IRMD): Free Stock Analysis Report EDWARDS LIFESCI (EW): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research