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.
OPKO Health (OPK) Q4 Earnings Decline Y/Y, Margins Down
Read MoreHide Full Article
OPKO Health, Inc. (OPK - Free Report) reported loss of 38 cents per share in the fourth quarter of 2017 compared with loss of 4 cents a year ago. The Zacks Consensus Estimate for the quarter was pegged at a loss of 8 cents.
The company reported full-year 2017 loss of 55 cents, comparing unfavorably with the year-ago loss of 5 cents.
Revenues
In the fourth quarter, OPKO Health generated total revenues of $193.7 million, down 29.7% year over year from $275.5 million. The reported figure also missed the Zacks Consensus Estimate of $307 million.
Net revenues in 2017 totaled $1.07 billion, down 12.3% from the year-ago number of $1.22 billion.
Gross profit in the fourth quarter was $37.1 million, down 68.1% year over year. Gross margin contracted a massive 2300 basis points (bps) to 19.2% from 42.1% in the year-ago quarter.
Opko Health, Inc. Price, Consensus and EPS Surprise
Research and development expenses totaled $34.2 million, up 23.9% year over year while selling, general and administrative expenses amounted to $124.6 million, up 3.4%. Consequently, loss from operations came in at $121.7 million, highlighting a significant decline from an operating loss of $31.9 million in the prior-year quarter. The decline can be attributed to a rise in operating expenses owing to the company’s significant investments associated with the commercial launch of RAYALDEE along with consistent investments in the pharmaceutical pipeline.
Financials
OPKO Health exited 2017 with cash and cash equivalents and marketable securities of $91.5 million compared with $168.7 million recorded at the end of 2016.
Our Take
OPKO Health exited the fourth quarter on a disappointing note.
Nonetheless, we are encouraged by the ongoing developments in all of the company’s businesses, which include diagnostics business as Bio-Reference Laboratories and pharmaceutical business. We are also upbeat about OPKO Health’s growing revenues from GeneDx, Bio-Reference's genetic testing unit and the 4Kscore test in the quarter.
However, the rise in operating expenses might continue to mar the company’s financials.
Zacks Rank & Key Picks
OPKO Health has a Zacks Rank #3 (Hold).
A few better-ranked stocks that reported solid results this earnings season are PetMed Express (PETS - Free Report) , PerkinElmer and Becton, Dickinson and Company (BDX - Free Report) . While PetMed sports a Zacks Rank #1 (Strong Buy), PerkinElmer and Becton, Dickinson carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
PetMed reported third-quarter fiscal 2018 results. Adjusted earnings per share of 44 cents were up 88.3% from the prior-year quarter. Revenues rose 13.7% on a year-over-year basis to $60.1 million.
PerkinElmer reported fourth-quarter 2017 adjusted earnings per share of 97 cents. Adjusted revenues were approximately $641.6 million, up from $567 million in the year-ago quarter.
Becton, Dickinson reported first-quarter fiscal 2018 adjusted earnings per share of $2.48, up 3.9% at constant currency. Revenues totaled $3.08 billion, up 3.7% at constant currency.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
OPKO Health (OPK) Q4 Earnings Decline Y/Y, Margins Down
OPKO Health, Inc. (OPK - Free Report) reported loss of 38 cents per share in the fourth quarter of 2017 compared with loss of 4 cents a year ago. The Zacks Consensus Estimate for the quarter was pegged at a loss of 8 cents.
The company reported full-year 2017 loss of 55 cents, comparing unfavorably with the year-ago loss of 5 cents.
Revenues
In the fourth quarter, OPKO Health generated total revenues of $193.7 million, down 29.7% year over year from $275.5 million. The reported figure also missed the Zacks Consensus Estimate of $307 million.
Net revenues in 2017 totaled $1.07 billion, down 12.3% from the year-ago number of $1.22 billion.
Gross profit in the fourth quarter was $37.1 million, down 68.1% year over year. Gross margin contracted a massive 2300 basis points (bps) to 19.2% from 42.1% in the year-ago quarter.
Opko Health, Inc. Price, Consensus and EPS Surprise
Opko Health, Inc. Price, Consensus and EPS Surprise | Opko Health, Inc. Quote
Research and development expenses totaled $34.2 million, up 23.9% year over year while selling, general and administrative expenses amounted to $124.6 million, up 3.4%. Consequently, loss from operations came in at $121.7 million, highlighting a significant decline from an operating loss of $31.9 million in the prior-year quarter. The decline can be attributed to a rise in operating expenses owing to the company’s significant investments associated with the commercial launch of RAYALDEE along with consistent investments in the pharmaceutical pipeline.
Financials
OPKO Health exited 2017 with cash and cash equivalents and marketable securities of $91.5 million compared with $168.7 million recorded at the end of 2016.
Our Take
OPKO Health exited the fourth quarter on a disappointing note.
Nonetheless, we are encouraged by the ongoing developments in all of the company’s businesses, which include diagnostics business as Bio-Reference Laboratories and pharmaceutical business. We are also upbeat about OPKO Health’s growing revenues from GeneDx, Bio-Reference's genetic testing unit and the 4Kscore test in the quarter.
However, the rise in operating expenses might continue to mar the company’s financials.
Zacks Rank & Key Picks
OPKO Health has a Zacks Rank #3 (Hold).
A few better-ranked stocks that reported solid results this earnings season are PetMed Express (PETS - Free Report) , PerkinElmer and Becton, Dickinson and Company (BDX - Free Report) . While PetMed sports a Zacks Rank #1 (Strong Buy), PerkinElmer and Becton, Dickinson carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
PetMed reported third-quarter fiscal 2018 results. Adjusted earnings per share of 44 cents were up 88.3% from the prior-year quarter. Revenues rose 13.7% on a year-over-year basis to $60.1 million.
PerkinElmer reported fourth-quarter 2017 adjusted earnings per share of 97 cents. Adjusted revenues were approximately $641.6 million, up from $567 million in the year-ago quarter.
Becton, Dickinson reported first-quarter fiscal 2018 adjusted earnings per share of $2.48, up 3.9% at constant currency. Revenues totaled $3.08 billion, up 3.7% at constant currency.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>