It has been about a month since the last earnings report for Ophthotech Corporation . Shares have lost about 13.7% 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 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.
Ophthotech Posts Narrower-than-Expected Q1 Loss, Sales Miss
Ophthotech reported first-quarter 2017 loss of $1.20 per share, narrower than the Zacks Consensus Estimate of a loss of $1.31 but wider than the year-ago loss of $1.03.
Given that Ophthotech does not have any approved product in its portfolio yet, its top line solely comprises collaboration revenues. The company earns collaboration revenues under its licensing and commercialization agreement with Novartis AG.
Collaboration revenues decreased 89.2% year over year to $1.7 million, primarily due to decrease in shipment of Fovista active pharmaceutical ingredients (API) to Novartis. Reported revenues missed the Zacks Consensus Estimate of $1.94 million.
Quarter in Detail
Research and development expenses decreased 15.3% to $32 million, mainly due decrease in expenses related to the phase III program on Fovista, which includes manufacturing expenses.
General and administrative expenses decreased 10.2% from the year-ago period to $13.2 million due to cost control initiatives undertaken by the company.
Pipeline Update
As a part of restructuring activities following the failure of two studies in Dec 2016, in Jan 2017, the company implemented a plan that it will cut its workforce by 80%, terminate and wind down the failed Fovista studies and Fovista expansion studies and cancel manufacturing commitments related to the same.
Cash Balance
The company had cash balance of $227.6 million as of Mar 31, 2017. Cash of $45 million to $55 million has been committed to implementation of reduction in workforce, winding down of Fovista phase III studies and cancellation fees related to manufacturing commitments. A portion of this cash is also allocated for the ongoing phase III study of Fovista.
The company expects to have cash balance in the range of $140 million to $160 million by the end of fiscal year 2017.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last one month period as none of them issued any earnings estimate revisions.
Ophthotech Corporation Price and Consensus
VGM Scores
At this time, Ophthotech's stock has a poor Growth Score of 'F', a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of 'F' on the value side, putting it in the fifth quintile for this investment strategy.
Overall, the 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.
Our style scores indicate investors will probably be better served looking elsewhere.
Outlook
Notably, the stock has a Zacks Rank #3 (Hold). We expect in-line returns from the stock in the next few months.
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Why Is Ophthotech (OPHT) Down 13.7% Since the Last Earnings Report?
It has been about a month since the last earnings report for Ophthotech Corporation . Shares have lost about 13.7% 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 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.
Ophthotech Posts Narrower-than-Expected Q1 Loss, Sales Miss
Ophthotech reported first-quarter 2017 loss of $1.20 per share, narrower than the Zacks Consensus Estimate of a loss of $1.31 but wider than the year-ago loss of $1.03.
Given that Ophthotech does not have any approved product in its portfolio yet, its top line solely comprises collaboration revenues. The company earns collaboration revenues under its licensing and commercialization agreement with Novartis AG.
Collaboration revenues decreased 89.2% year over year to $1.7 million, primarily due to decrease in shipment of Fovista active pharmaceutical ingredients (API) to Novartis. Reported revenues missed the Zacks Consensus Estimate of $1.94 million.
Quarter in Detail
Research and development expenses decreased 15.3% to $32 million, mainly due decrease in expenses related to the phase III program on Fovista, which includes manufacturing expenses.
General and administrative expenses decreased 10.2% from the year-ago period to $13.2 million due to cost control initiatives undertaken by the company.
Pipeline Update
As a part of restructuring activities following the failure of two studies in Dec 2016, in Jan 2017, the company implemented a plan that it will cut its workforce by 80%, terminate and wind down the failed Fovista studies and Fovista expansion studies and cancel manufacturing commitments related to the same.
Cash Balance
The company had cash balance of $227.6 million as of Mar 31, 2017. Cash of $45 million to $55 million has been committed to implementation of reduction in workforce, winding down of Fovista phase III studies and cancellation fees related to manufacturing commitments. A portion of this cash is also allocated for the ongoing phase III study of Fovista.
The company expects to have cash balance in the range of $140 million to $160 million by the end of fiscal year 2017.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last one month period as none of them issued any earnings estimate revisions.
Ophthotech Corporation Price and Consensus
Ophthotech Corporation Price and Consensus | Ophthotech Corporation Quote
VGM Scores
At this time, Ophthotech's stock has a poor Growth Score of 'F', a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of 'F' on the value side, putting it in the fifth quintile for this investment strategy.
Overall, the 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.
Our style scores indicate investors will probably be better served looking elsewhere.
Outlook
Notably, the stock has a Zacks Rank #3 (Hold). We expect in-line returns from the stock in the next few months.