We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why Is OPKO Health (OPK) Down 43.5% Since Last Earnings Report?
Read MoreHide Full Article
It has been about a month since the last earnings report for OPKO Health (OPK - Free Report) . Shares have lost about 43.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is OPKO Health due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
OPKO Health Q2 Earnings and Revenues Beat Estimates
OPKO Health, Inc. reported second-quarter 2020 adjusted earnings per share of 5 cents per share against the Zacks Consensus Estimate of a loss of 7 cents. Notably, the company had reported a loss of 10 cents in the prior-year quarter.
Second-quarter revenues of this Zacks Rank #2 (Buy) company were $301.2 million, which outpaced the Zacks Consensus Estimate by 28.4%. The top line also improved 33% on a year-over-year basis.
Segmental Revenues in Q2
Revenues from Services amounted to $251 million in the reported quarter, up 41% year over year. The upside can be attributed to increased COVID-19 testing volumes. However, lower clinical and genomic test volumes on account of physician office shut-downs and stay-at-home orders associated with the pandemic partially offset the upside.
Revenues from Products rose 2.1% to $29.3 million. Per management, revenues from products include contributions from RAYALDEE worth $8.6 million.
Revenues from Transfer of intellectual property totaled $20.9 million, up 8.9% year over year.
Per management, total RAYALDEE prescriptions reported by IQVIA improved 45% year over year in the second quarter. Further, the open-label Phase 2 trial for RAYALDEE in hemodialysis patients has completed enrollment (it was slower than anticipated owing to the pandemic) with full top-line data anticipated in first-quarter 2021.
Further, on Jun 1, 2020, the FDA authorized OPKO Health to undertake a Phase 2 trial with RAYALDEE as a treatment for patients with mild-to moderate COVID-19.
Margin Analysis
Gross profit in the reported quarter was $138.5 million, up 68.5% from the prior-year quarter. Gross margin was 45.9% of net revenues, up 960 basis points (bps) year over year.
Selling, general and administrative expenses totaled $77.7 million, down 12.2% year over year. Research and development expenses amounted to $17.6 million, down 37.8% year over year.
Operating income in the second quarter was $27.2 million, against the year-ago quarter’s loss of $47.2 million.
Financial Update
The company exited the second quarter with cash, cash equivalents and marketable securities of $21.6 million, compared with $85.5 million at the year-end 2019.
Guidance
In the quarter under review, OPKO Health refrained from issuing any guidance.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month. The consensus estimate has shifted 157.14% due to these changes.
VGM Scores
At this time, OPKO Health has an average Growth Score of C, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise OPKO Health has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why Is OPKO Health (OPK) Down 43.5% Since Last Earnings Report?
It has been about a month since the last earnings report for OPKO Health (OPK - Free Report) . Shares have lost about 43.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is OPKO Health due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
OPKO Health Q2 Earnings and Revenues Beat Estimates
OPKO Health, Inc. reported second-quarter 2020 adjusted earnings per share of 5 cents per share against the Zacks Consensus Estimate of a loss of 7 cents. Notably, the company had reported a loss of 10 cents in the prior-year quarter.
Second-quarter revenues of this Zacks Rank #2 (Buy) company were $301.2 million, which outpaced the Zacks Consensus Estimate by 28.4%. The top line also improved 33% on a year-over-year basis.
Segmental Revenues in Q2
Revenues from Services amounted to $251 million in the reported quarter, up 41% year over year. The upside can be attributed to increased COVID-19 testing volumes. However, lower clinical and genomic test volumes on account of physician office shut-downs and stay-at-home orders associated with the pandemic partially offset the upside.
Revenues from Products rose 2.1% to $29.3 million. Per management, revenues from products include contributions from RAYALDEE worth $8.6 million.
Revenues from Transfer of intellectual property totaled $20.9 million, up 8.9% year over year.
Per management, total RAYALDEE prescriptions reported by IQVIA improved 45% year over year in the second quarter. Further, the open-label Phase 2 trial for RAYALDEE in hemodialysis patients has completed enrollment (it was slower than anticipated owing to the pandemic) with full top-line data anticipated in first-quarter 2021.
Further, on Jun 1, 2020, the FDA authorized OPKO Health to undertake a Phase 2 trial with RAYALDEE as a treatment for patients with mild-to moderate COVID-19.
Margin Analysis
Gross profit in the reported quarter was $138.5 million, up 68.5% from the prior-year quarter. Gross margin was 45.9% of net revenues, up 960 basis points (bps) year over year.
Selling, general and administrative expenses totaled $77.7 million, down 12.2% year over year. Research and development expenses amounted to $17.6 million, down 37.8% year over year.
Operating income in the second quarter was $27.2 million, against the year-ago quarter’s loss of $47.2 million.
Financial Update
The company exited the second quarter with cash, cash equivalents and marketable securities of $21.6 million, compared with $85.5 million at the year-end 2019.
Guidance
In the quarter under review, OPKO Health refrained from issuing any guidance.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month. The consensus estimate has shifted 157.14% due to these changes.
VGM Scores
At this time, OPKO Health has an average Growth Score of C, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise OPKO Health has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.