A month has gone by since the last earnings report for The Medicines Company . Shares have lost about 5.1% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock's next earnings release, or is it 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 drivers.
Medicines Company Fourth Quarter Loss Narrower than Expected
The Medicines reported a loss of $1.29 per share (including the impact of share-based compensation expenses) in the fourth quarter of 2016, narrower than Zacks Consensus Estimate of a loss of $1.43. The quarterly loss, however, widened from the year-ago loss of $0.95 per share.
Quarterly revenues plunged 62.5% year over year to $25.2 million. Reported revenues also missed the Zacks Consensus Estimate of $28.1 million. Net revenue for the quarter included royalty revenues of $9.1 million due to gross profit on authorized generic sales of Angiomax by Sandoz. Royalty revenues from Angiomax of $9.1 million were significantly lower than the year-ago figure of $29.4 million.
Quarter in Detail
Worldwide sales of Angiomax were $7.8 million during the reported quarter, significantly lower than the year-ago sales of $23.2 million. In the U.S., sales of the product plunged 41.8% to $5.5 million owing to the Jul 2015 loss of exclusivity.
Sales of other products like Minocin, Orbactiv, Ionsys and the recently divested non-core cardiovascular products were $8.3 million, down 43.2% year over year.
2016 Results
Full-year sales decreased significantly to $167.8 million from $309 million a year ago. Sales missed the Zacks Consensus Estimate of $170.8 million.
Full-year loss of $3.99 per share was significantly narrower than Zacks Consensus Estimate of a loss of $5.45 per share. The company had incurred a loss of $2.73 per share in the previous year.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There has been one revision lower for the current quarter. In the past month, the consensus estimate has shifted by 5.8% due to these changes.
VGM Scores
At this time, Medicines Company's stock has a poor Growth Score of 'F', however its Momentum is doing a lot better with a 'C'. However, the stock was allocated a grade of 'F' on the value side, putting it in the lowest quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'F'. If you aren't focused on one strategy, this score is the one you should be interested in.
The company's stock is suitable solely for momentum based on our styles scores.
Outlook
While estimates have been broadly trending downward for the stock, the magnitude of these revisions looks promising. Notably, the stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.
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Why Is Medicines Company (MDCO) Down 5.1% Since the Last Earnings Report?
A month has gone by since the last earnings report for The Medicines Company . Shares have lost about 5.1% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock's next earnings release, or is it 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 drivers.
Medicines Company Fourth Quarter Loss Narrower than Expected
The Medicines reported a loss of $1.29 per share (including the impact of share-based compensation expenses) in the fourth quarter of 2016, narrower than Zacks Consensus Estimate of a loss of $1.43. The quarterly loss, however, widened from the year-ago loss of $0.95 per share.
Quarterly revenues plunged 62.5% year over year to $25.2 million. Reported revenues also missed the Zacks Consensus Estimate of $28.1 million. Net revenue for the quarter included royalty revenues of $9.1 million due to gross profit on authorized generic sales of Angiomax by Sandoz. Royalty revenues from Angiomax of $9.1 million were significantly lower than the year-ago figure of $29.4 million.
Quarter in Detail
Worldwide sales of Angiomax were $7.8 million during the reported quarter, significantly lower than the year-ago sales of $23.2 million. In the U.S., sales of the product plunged 41.8% to $5.5 million owing to the Jul 2015 loss of exclusivity.
Sales of other products like Minocin, Orbactiv, Ionsys and the recently divested non-core cardiovascular products were $8.3 million, down 43.2% year over year.
2016 Results
Full-year sales decreased significantly to $167.8 million from $309 million a year ago. Sales missed the Zacks Consensus Estimate of $170.8 million.
Full-year loss of $3.99 per share was significantly narrower than Zacks Consensus Estimate of a loss of $5.45 per share. The company had incurred a loss of $2.73 per share in the previous year.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There has been one revision lower for the current quarter. In the past month, the consensus estimate has shifted by 5.8% due to these changes.
The Medicines Company Price and Consensus
The Medicines Company Price and Consensus | The Medicines Company Quote
VGM Scores
At this time, Medicines Company's stock has a poor Growth Score of 'F', however its Momentum is doing a lot better with a 'C'. However, the stock was allocated a grade of 'F' on the value side, putting it in the lowest quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'F'. If you aren't focused on one strategy, this score is the one you should be interested in.
The company's stock is suitable solely for momentum based on our styles scores.
Outlook
While estimates have been broadly trending downward for the stock, the magnitude of these revisions looks promising. Notably, the stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.