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OPKO Health (OPK) Q4 Earnings and Revenues Beat Estimates

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OPKO Health, Inc. (OPK - Free Report) reported fourth-quarter 2020 adjusted earnings per share (EPS) of 5 cents per share, which outpaced the Zacks Consensus Estimate of 4 cents by 25%. Notably, the company had reported a loss of 18 cents in the prior-year quarter.

For the full-year 2020, the company reported adjusted EPS of 5 cents, against the year-ago period’s loss of 53 cents. The figure beat the consensus mark of a penny.

Revenue Details

Fourth-quarter revenues of this Zacks Rank #3 (Hold) company were $494.6 million, which surpassed the Zacks Consensus Estimate by 13.4%. The top line also improved 120.5% on a year-over-year basis.

For the full-year 2020, the company reported revenues of $1.44 billion, which outpaced the consensus mark by 5.1%. The figure also surged 59.2% from the prior year.

Segmental Revenues in Q4

Revenues from Services amounted to $457.9 million in the reported quarter, up 157.4% year over year driven by COVID-19 testing volume. However, lower clinical test volume, and clinical and genomic test reimbursement partially offset the upside.

OPKO Health, Inc. Price, Consensus and EPS Surprise

OPKO Health, Inc. Price, Consensus and EPS Surprise

OPKO Health, Inc. price-consensus-eps-surprise-chart | OPKO Health, Inc. Quote

Revenues from Products fell 3.8% to $30.8 million due to lower sales of RAYALDEE. However, increase in sales in OPKO Chile partially offset the downside.

Revenues from Transfer of intellectual property totaled $5.9 million, down 59% year over year, due to a decline in the amortization of payments received from Pfizer associated with somatrogon.

Per management, total RAYALDEE prescriptions reported by IQVIA declined 16.2% year over year in the fourth quarter. During the quarter under review, demand for RAYALDEE was impacted due to challenges in onboarding new patients resulting from COVID-19 pandemic.

Margin Analysis

Gross profit in the reported quarter was $175.9 million, up 114.5% from the prior-year quarter. Gross margin was 35.6% of net revenues, down 100 basis points (bps) year over year.

Selling, general and administrative expenses totaled $101.8 million, up 28.7% year over year. Research and development expenses amounted to $17.5 million, down 23.9% year over year.

Operating income in the fourth quarter was $49.3 million, against the year-ago quarter’s loss of $112.5 million.

Financial Update

The company exited the fourth quarter with cash, cash equivalents and marketable securities of $72.2 million, compared with $36.3 million on a sequential basis.

Guidance

In the quarter under review, OPKO Health refrained from issuing any guidance.

Summing Up

OPKO Health exited the fourth quarter on a strong note. Further, the company’s utilization of the 4Kscore remains strong. Also, the company witnessed strength in Services segment in the quarter under review.

Regulatory approvals, expansion of digital health access through a new platform (Scarlet Health) and launch of new genetic tests during the fourth quarter are highlights.

Furthermore, BioReference Laboratories COVID-19 testing volume witnessed a significant increase in the fourth quarter.

Meanwhile, contraction in gross margin remains a woe. Moreover, decline is sales of RAYALDEE is a concern. Further, OPKO Health continues to face cut-throat competition in the MedTech space.

Earnings of Other MedTech Majors at a Glance

Some better-ranked stocks in the broader medical space that have already announced their quarterly results are Hologic, Inc. (HOLX - Free Report) , Abbott Laboratories (ABT - Free Report) and AngioDynamics, Inc. (ANGO - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Hologic reported first-quarter fiscal 2021 adjusted EPS of $2.86, which surpassed the Zacks Consensus Estimate by 33.6%.

Abbott reported fourth-quarter 2020 adjusted EPS of $1.45, which beat the Zacks Consensus Estimate by 6.6%. Fourth-quarter worldwide sales of $10.7 billion outpaced the consensus mark by 7.9%.

AngioDynamics reported second-quarter fiscal 2021 adjusted EPS of a penny against the Zacks Consensus Estimate of a loss per share of 2 cents. Revenues of $72.8 million beat the consensus mark by 8%.

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