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) Incurs Loss in Q3, Lags Revenue Estimates
Read MoreHide Full Article
OPKO Health, Inc. (OPK - Free Report) incurred loss of 5 cents per share in third-quarter 2018, narrower than the Zacks Consensus Estimate of a loss of 8 cents. The company had incurred a loss of 8 cents per share in the year-ago quarter.
Revenues totaled $249.8 million, missing the Zacks Consensus Estimate of $263 million. However, on a year-over-year basis, the top line increased 1.5%.
OPKO Health carries a Zacks Rank #3 (Hold).
Segment Details
This Florida-based diagnostics and pharmaceuticals company reports through three major segments — services, products and transfer of intellectual property.
Revenues from services grossed $202.8 million in the reported quarter, up 0.9% year over year.
Revenues from products increased 11% to $25.4 million. Per management, revenues from products include $5.8 million contribution from RAYALDEE.
Revenues from transfer of intellectual property came in at $21.6 million, down 3.1% year over year.
Per management, total RAYALDEE prescriptions improved 222% year over year in the third quarter. OPKO Health initiated the Phase 2 clinical trial of RAYALDEE as a new treatment for secondary hyperparathyroidism (SHPT) in adults with vitamin D insufficiency and those suffering from stage 5 chronic kidney disease.
Margin Analysis
Adjusted gross profit in the reported quarter came in at $98.9 million, up 4.4% from the prior-year quarter. Adjusted gross margin was 60.4%, down 110 basis points (bps).
Selling, general and administrative expenses totaled $84.1 million, down 18.5% year over year.
Research and development expenses amounted to $30.2 million, down 7.1% year over year.
In the third quarter, OPKO Health incurred an operating loss of $33.5 million, which narrowed considerably from the year-ago quarter’s $47.8 million.
Guidance
OPKO Health did not provide any guidance for 2018.
However, for the fourth quarter of 2018, management expects revenues from services between $185 million and $205 million.
Product revenues are expected within $28-$32 million, including revenues for RAYALDEE between $6.5 million and $7.1 million.
Revenues from transfer of intellectual property are anticipated in the band of $18-$23 million.
The company expects costs and expenses to be between $280 million and $290 million, including research and development expenses of $33-$38 million in the fourth quarter.
Summing Up
OPKO Health exited the third quarter on a mixed note. While loss per share was narrower-than-expected, revenues topped the Zacks Consensus Estimate. Contribution from RAYALDEE was significant. Furthermore, OPKO Health’s utilization of the 4Kscore remains strong, with 8,700 tests registered in the third quarter.
OPKO has also completed a Premarket Approval (PMA) submission for Claros point-of-care PSA test to the FDA. Additionally, tests like testosterone and Vitamin D utilizing the Claros platform are advancing toward a 510(k) submission to the FDA.
These apart, the company’s clinical development programs look promising with a robust pipeline of candidates. Several metabolic and endocrinology programs that are underway, are likely to provide OPKO Health a competitive advantage.
Meanwhile, the margins look pressed at the moment. Also, the company’s core segmental revenues remain weak in the quarter. Moreover, the decline in R&D expenses indicates reduced focus on innovation.
Intuitive Surgical reported third-quarter 2018 adjusted earnings per share (EPS) of $2.83, which exceeded the Zacks Consensus Estimate of $2.65. Revenues totaled $920.9 million, which outpaced the consensus mark of $918.6 million.
Stryker posted third-quarter 2018 adjusted EPS of $1.69, which outpaced the Zacks Consensus Estimate by a penny. Operating margin was 17.8%, up 30 bps.
Merit Medical reported third-quarter 2018 adjusted EPS of 47 cents, which trumped the Zacks Consensus Estimate of 42 cents. Revenues of $221.6 million edged past the consensus mark of $218 million.
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) Incurs Loss in Q3, Lags Revenue Estimates
OPKO Health, Inc. (OPK - Free Report) incurred loss of 5 cents per share in third-quarter 2018, narrower than the Zacks Consensus Estimate of a loss of 8 cents. The company had incurred a loss of 8 cents per share in the year-ago quarter.
Revenues totaled $249.8 million, missing the Zacks Consensus Estimate of $263 million. However, on a year-over-year basis, the top line increased 1.5%.
OPKO Health carries a Zacks Rank #3 (Hold).
Segment Details
This Florida-based diagnostics and pharmaceuticals company reports through three major segments — services, products and transfer of intellectual property.
Revenues from services grossed $202.8 million in the reported quarter, up 0.9% year over year.
Revenues from products increased 11% to $25.4 million. Per management, revenues from products include $5.8 million contribution from RAYALDEE.
Revenues from transfer of intellectual property came in at $21.6 million, down 3.1% year over year.
OPKO Health, Inc. Price and Consensus
OPKO Health, Inc. Price and Consensus | OPKO Health, Inc. Quote
RAYALDEE Update
Per management, total RAYALDEE prescriptions improved 222% year over year in the third quarter. OPKO Health initiated the Phase 2 clinical trial of RAYALDEE as a new treatment for secondary hyperparathyroidism (SHPT) in adults with vitamin D insufficiency and those suffering from stage 5 chronic kidney disease.
Margin Analysis
Adjusted gross profit in the reported quarter came in at $98.9 million, up 4.4% from the prior-year quarter. Adjusted gross margin was 60.4%, down 110 basis points (bps).
Selling, general and administrative expenses totaled $84.1 million, down 18.5% year over year.
Research and development expenses amounted to $30.2 million, down 7.1% year over year.
In the third quarter, OPKO Health incurred an operating loss of $33.5 million, which narrowed considerably from the year-ago quarter’s $47.8 million.
Guidance
OPKO Health did not provide any guidance for 2018.
However, for the fourth quarter of 2018, management expects revenues from services between $185 million and $205 million.
Product revenues are expected within $28-$32 million, including revenues for RAYALDEE between $6.5 million and $7.1 million.
Revenues from transfer of intellectual property are anticipated in the band of $18-$23 million.
The company expects costs and expenses to be between $280 million and $290 million, including research and development expenses of $33-$38 million in the fourth quarter.
Summing Up
OPKO Health exited the third quarter on a mixed note. While loss per share was narrower-than-expected, revenues topped the Zacks Consensus Estimate. Contribution from RAYALDEE was significant. Furthermore, OPKO Health’s utilization of the 4Kscore remains strong, with 8,700 tests registered in the third quarter.
OPKO has also completed a Premarket Approval (PMA) submission for Claros point-of-care PSA test to the FDA. Additionally, tests like testosterone and Vitamin D utilizing the Claros platform are advancing toward a 510(k) submission to the FDA.
These apart, the company’s clinical development programs look promising with a robust pipeline of candidates. Several metabolic and endocrinology programs that are underway, are likely to provide OPKO Health a competitive advantage.
Meanwhile, the margins look pressed at the moment. Also, the company’s core segmental revenues remain weak in the quarter. Moreover, the decline in R&D expenses indicates reduced focus on innovation.
Q3 Earnings of MedTech Majors at a Glance
A few better-ranked stocks from the broader Medical space that delivered robust results this earnings season are Intuitive Surgical (ISRG - Free Report) , Stryker Corporation (SYK - Free Report) and Merit Medical Systems, Inc (MMSI - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Intuitive Surgical reported third-quarter 2018 adjusted earnings per share (EPS) of $2.83, which exceeded the Zacks Consensus Estimate of $2.65. Revenues totaled $920.9 million, which outpaced the consensus mark of $918.6 million.
Stryker posted third-quarter 2018 adjusted EPS of $1.69, which outpaced the Zacks Consensus Estimate by a penny. Operating margin was 17.8%, up 30 bps.
Merit Medical reported third-quarter 2018 adjusted EPS of 47 cents, which trumped the Zacks Consensus Estimate of 42 cents. Revenues of $221.6 million edged past the consensus mark of $218 million.
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 >>