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) Stock Gains 2.1% Despite Q2 Earnings Miss
Read MoreHide Full Article
Shares of OPKO Health, Inc. (OPK - Free Report) rose 2.1% till Aug 8, following the company's second-quarter 2022 results announcement on Aug 4.
OPKO Health delivered adjusted loss per share of 4 cents in the second quarter of 2022, wider than the loss of 3 cents per share in the year-ago period. The figure was also wider than the Zacks Consensus Estimate of a loss of 2 cents per share.
Our projection of loss per share was 5 cents.
GAAP loss per share for the quarter was 14 cents, wider than the year-earlier loss of 3 cents per share.
Revenues in Detail
OPKO Health registered revenues of $309.9 million in the second quarter, down 29.9% year over year. The figure lagged the Zacks Consensus Estimate by 3%.
The second-quarter revenue compares to our estimate of $326 million.
Lower revenues from the company’s Diagnostics segment dragged the overall top line.
Segmental Revenues
OPKO Health manages its operations through two reportable segments – Diagnostics and Pharmaceuticals.
Within the Diagnostics arm, revenues from services amounted to $186.8 million in the reported quarter, down 52.9% year over year, primarily due to a fall in COVID-19 testing volume.
BioReference Laboratories (BRL) processed approximately 0.9 million COVID-19 polymerase chain reaction (PCR) tests in the second quarter of 2022, down 67.9% year over year.
Within the Pharmaceuticals arm, revenues from products rose 0.6% to $35.9 million, owing to higher RAYALDEE sales. However, this was partially offset by a fall in OPKO’s pharmaceutical business in Chile due to foreign exchange fluctuations.
Revenues from sales of RAYALDEE in the second quarter of 2022 were $6.2 million, up 24% from the prior-year period.
Revenues from the transfer of intellectual property and other totaled $87.2 million, up by a stupendous 817.9% year over year. This uptick reflects milestone payments for the launch of NGENLA in Europe and Japan.
OPKO Health, Inc. Price, Consensus and EPS Surprise
In the quarter under review, OPKO Health’s gross profit fell 22.7% to $115.6 million. Gross margin expanded by a huge 351 basis points (bps) to 37.3%.
We had projected 30.9% of gross margin for Q2.
Selling, general and administrative expenses fell 10.3% to $101.5 million. Research and development expenses fell 5.5% year over year to $17.2 million. Adjusted operating expenses of $118.7 million decreased 9.7% year over year.
Adjusted operating loss totaled $3.1 million against the prior-year quarter’s adjusted operating profit of $18.1 million.
Financial Position
OPKO Health exited the second quarter of 2022 with cash and cash equivalents of $210.5 million compared with $102.3 million at the end of first quarter.
2022 Guidance
OPKO Health has revised its revenue outlook for full-year 2022.
The company expects overall revenues for 2022 to be between $950 million and $1 billion, lower than the previous expectations of $1.1-$1.2 billion. The Zacks Consensus Estimate for the same currently stands at $1.08 billion.
The full-year overall revenues include revenues from services of $700-$750 million (lower than the previously-expected $810-$870 million), $140 million-$150 million (lower than the previously-expected $145-$155 million) in revenues from products and other revenues of $100-$110 million (unchanged).
OPKO Health expects to perform between $3.3 and $3.5 million in COVID PCR point-of-care antibodies tests during the year, including the 3.1 million tests performed during the first six months of the year.
Our Take
OPKO Health exited the second quarter of 2022 with lower-than-expected results. The year-over-year fall in the overall top line and continued loss per share are concerning. Lower Diagnostics revenues as lower BRL testing volumes are also worrying. Persistent operating loss for OPKO Health is another area of concern.
On the positive side, uptick in year-over-year Pharmaceuticals revenues is encouraging. In May, the company acquired ModeX Therapeutics, Inc., thereby gaining proprietary immunotherapy technology. During the reported quarter, Pfizer Inc. launched OPKO Health’s NGENLA (Somatrogon) injection in Germany, Japan and additional global markets. Other developments like BRL’s Scarlet Health announcing a collaboration with Teladoc Health raise our optimism. Improvement in RAYALDEE sales is another plus. Expansion of gross margin also bodes well for the company.
OPKO Health’s strength in its women's health and oncology businesses also augur well. Robust adoption of the company’s digital health services also buoys our optimism.
Zacks Rank and Stocks to Consider
OPKO Health currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Quest Diagnostics Incorporated (DGX - Free Report) , AMN Healthcare Services, Inc. (AMN - Free Report) and Zimmer Biomet Holdings, Inc. (ZBH - Free Report) .
Quest Diagnostics, carrying a Zacks Rank #2 (Buy), reported second-quarter 2022 adjusted EPS of $2.36, which beat the Zacks Consensus Estimate by 9.8%. Revenues of $2.45 billion outpaced the consensus mark by 7.5%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Quest Diagnostics has an earnings yield of 6.9% compared with the industry’s 3.9%. DGX’s earnings surpassed estimates in three of the trailing four quarters and missed the same in one, the average being 12.1%.
AMN Healthcare, sporting a Zacks Rank #1, reported second-quarter 2022 adjusted EPS of $3.31, which beat the Zacks Consensus Estimate by 11.8%. Revenues of $1.43 billion outpaced the consensus mark by 4.8%.
AMN Healthcare has an estimated long-term growth rate of 3.2%. AMN’s earnings surpassed estimates in all the trailing four quarters, the average being 15.7%.
Zimmer Biomet reported second-quarter 2022 adjusted EPS of $1.82, which surpassed the Zacks Consensus Estimate by 11.7%. Second-quarter revenues of $1.78 billion outpaced the Zacks Consensus Estimate by 3.5%. It currently has a Zacks Rank #2.
Zimmer Biomet has an estimated long-term growth rate of 5%. ZBH’s earnings surpassed estimates in three of the trailing four quarters and missed the same in one, the average being 7.4%.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
OPKO Health (OPK) Stock Gains 2.1% Despite Q2 Earnings Miss
Shares of OPKO Health, Inc. (OPK - Free Report) rose 2.1% till Aug 8, following the company's second-quarter 2022 results announcement on Aug 4.
OPKO Health delivered adjusted loss per share of 4 cents in the second quarter of 2022, wider than the loss of 3 cents per share in the year-ago period. The figure was also wider than the Zacks Consensus Estimate of a loss of 2 cents per share.
Our projection of loss per share was 5 cents.
GAAP loss per share for the quarter was 14 cents, wider than the year-earlier loss of 3 cents per share.
Revenues in Detail
OPKO Health registered revenues of $309.9 million in the second quarter, down 29.9% year over year. The figure lagged the Zacks Consensus Estimate by 3%.
The second-quarter revenue compares to our estimate of $326 million.
Lower revenues from the company’s Diagnostics segment dragged the overall top line.
Segmental Revenues
OPKO Health manages its operations through two reportable segments – Diagnostics and Pharmaceuticals.
Within the Diagnostics arm, revenues from services amounted to $186.8 million in the reported quarter, down 52.9% year over year, primarily due to a fall in COVID-19 testing volume.
BioReference Laboratories (BRL) processed approximately 0.9 million COVID-19 polymerase chain reaction (PCR) tests in the second quarter of 2022, down 67.9% year over year.
Within the Pharmaceuticals arm, revenues from products rose 0.6% to $35.9 million, owing to higher RAYALDEE sales. However, this was partially offset by a fall in OPKO’s pharmaceutical business in Chile due to foreign exchange fluctuations.
Revenues from sales of RAYALDEE in the second quarter of 2022 were $6.2 million, up 24% from the prior-year period.
Revenues from the transfer of intellectual property and other totaled $87.2 million, up by a stupendous 817.9% year over year. This uptick reflects milestone payments for the launch of NGENLA in Europe and Japan.
OPKO Health, Inc. Price, Consensus and EPS Surprise
OPKO Health, Inc. price-consensus-eps-surprise-chart | OPKO Health, Inc. Quote
Margin Analysis
In the quarter under review, OPKO Health’s gross profit fell 22.7% to $115.6 million. Gross margin expanded by a huge 351 basis points (bps) to 37.3%.
We had projected 30.9% of gross margin for Q2.
Selling, general and administrative expenses fell 10.3% to $101.5 million. Research and development expenses fell 5.5% year over year to $17.2 million. Adjusted operating expenses of $118.7 million decreased 9.7% year over year.
Adjusted operating loss totaled $3.1 million against the prior-year quarter’s adjusted operating profit of $18.1 million.
Financial Position
OPKO Health exited the second quarter of 2022 with cash and cash equivalents of $210.5 million compared with $102.3 million at the end of first quarter.
2022 Guidance
OPKO Health has revised its revenue outlook for full-year 2022.
The company expects overall revenues for 2022 to be between $950 million and $1 billion, lower than the previous expectations of $1.1-$1.2 billion. The Zacks Consensus Estimate for the same currently stands at $1.08 billion.
The full-year overall revenues include revenues from services of $700-$750 million (lower than the previously-expected $810-$870 million), $140 million-$150 million (lower than the previously-expected $145-$155 million) in revenues from products and other revenues of $100-$110 million (unchanged).
OPKO Health expects to perform between $3.3 and $3.5 million in COVID PCR point-of-care antibodies tests during the year, including the 3.1 million tests performed during the first six months of the year.
Our Take
OPKO Health exited the second quarter of 2022 with lower-than-expected results. The year-over-year fall in the overall top line and continued loss per share are concerning. Lower Diagnostics revenues as lower BRL testing volumes are also worrying. Persistent operating loss for OPKO Health is another area of concern.
On the positive side, uptick in year-over-year Pharmaceuticals revenues is encouraging. In May, the company acquired ModeX Therapeutics, Inc., thereby gaining proprietary immunotherapy technology. During the reported quarter, Pfizer Inc. launched OPKO Health’s NGENLA (Somatrogon) injection in Germany, Japan and additional global markets. Other developments like BRL’s Scarlet Health announcing a collaboration with Teladoc Health raise our optimism. Improvement in RAYALDEE sales is another plus. Expansion of gross margin also bodes well for the company.
OPKO Health’s strength in its women's health and oncology businesses also augur well. Robust adoption of the company’s digital health services also buoys our optimism.
Zacks Rank and Stocks to Consider
OPKO Health currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Quest Diagnostics Incorporated (DGX - Free Report) , AMN Healthcare Services, Inc. (AMN - Free Report) and Zimmer Biomet Holdings, Inc. (ZBH - Free Report) .
Quest Diagnostics, carrying a Zacks Rank #2 (Buy), reported second-quarter 2022 adjusted EPS of $2.36, which beat the Zacks Consensus Estimate by 9.8%. Revenues of $2.45 billion outpaced the consensus mark by 7.5%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Quest Diagnostics has an earnings yield of 6.9% compared with the industry’s 3.9%. DGX’s earnings surpassed estimates in three of the trailing four quarters and missed the same in one, the average being 12.1%.
AMN Healthcare, sporting a Zacks Rank #1, reported second-quarter 2022 adjusted EPS of $3.31, which beat the Zacks Consensus Estimate by 11.8%. Revenues of $1.43 billion outpaced the consensus mark by 4.8%.
AMN Healthcare has an estimated long-term growth rate of 3.2%. AMN’s earnings surpassed estimates in all the trailing four quarters, the average being 15.7%.
Zimmer Biomet reported second-quarter 2022 adjusted EPS of $1.82, which surpassed the Zacks Consensus Estimate by 11.7%. Second-quarter revenues of $1.78 billion outpaced the Zacks Consensus Estimate by 3.5%. It currently has a Zacks Rank #2.
Zimmer Biomet has an estimated long-term growth rate of 5%. ZBH’s earnings surpassed estimates in three of the trailing four quarters and missed the same in one, the average being 7.4%.