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OPKO Health (OPK) Down 9.5% Since Last Earnings Report: Can It Rebound?
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A month has gone by since the last earnings report for OPKO Health (OPK - Free Report) . Shares have lost about 9.5% 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 the most recent earnings report in order to get a better handle on the important drivers.
OPKO Health Q4 Earnings and Revenues Beat Estimates
OPKO Health, Inc. reported fourth-quarter 2020 adjusted earnings per share 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 the 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.
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates. The consensus estimate has shifted 33.33% due to these changes.
VGM Scores
At this time, OPKO Health has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. 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 this revision looks promising. Notably, OPKO Health has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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OPKO Health (OPK) Down 9.5% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for OPKO Health (OPK - Free Report) . Shares have lost about 9.5% 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 the most recent earnings report in order to get a better handle on the important drivers.
OPKO Health Q4 Earnings and Revenues Beat Estimates
OPKO Health, Inc. reported fourth-quarter 2020 adjusted earnings per share 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 the 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.
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates. The consensus estimate has shifted 33.33% due to these changes.
VGM Scores
At this time, OPKO Health has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. 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 this revision looks promising. Notably, OPKO Health has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.