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Why Is OPKO Health (OPK) Down 2.6% Since Last Earnings Report?
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It has been about a month since the last earnings report for OPKO Health (OPK - Free Report) . Shares have lost about 2.6% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is OPKO Health due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
OPKO Health Q2 Earnings and Revenues Beat Estimates
OPKO Health incurred adjusted loss of 10 cents per share in the second quarter of 2019, narrower than the Zacks Consensus Estimate of a loss of 11 cents. The company had incurred a loss of 4 cents per share a year ago.
Second-quarter revenues of this Zacks Rank #4 (Sell) company totaled $226.4 million, which surpassed the Zacks Consensus Estimate of $223.9 million. Further, the top line declined 14.1% on a year-over-year basis.
Segmental Revenues in Q2
Revenues from Services grossed $178.5 million in the reported quarter, down 17.4% year over year.
Revenues from Products inched up 0.7% to $28.7 million. Per management, revenues from products include $5.7 million contributions from RAYALDEE.
Revenues from Transfer of intellectual property came in at $19.2 million, up 0.5% year over year.
RAYALDEE Update
Per management, total RAYALDEE prescriptions reported by IQVIA improved 92% year over year in the second quarter. Further, management at OPKO Health announced that RAYALDEE marketing authorization applications filed by Vifor Fresenius have been accepted for review in several European countries.
Margin Analysis
Gross profit in the reported quarter came in at $82.2 million, down 27.6% from the prior-year quarter. Gross margin was 36.3% of net revenues, down a significant 680 basis points (bps) year over year.
Selling, general and administrative expenses totaled $88.5 million, up 0.9% year over year. Research and development expenses amounted to $28.3 million, down 3.1% year over year.
Operating loss in the second quarter was $47.2 million, much wider than the year-ago quarter’s loss of $5.1 million.
Guidance
OPKO Health did not issue any guidance. However, the company expects improved cash contributions and financial performance owing to RAYALDEE strength in the second half of 2019.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month. The consensus estimate has shifted -5.56% due to these changes.
VGM Scores
At this time, OPKO Health 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 bottom 20% 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.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, OPKO Health has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is OPKO Health (OPK) Down 2.6% Since Last Earnings Report?
It has been about a month since the last earnings report for OPKO Health (OPK - Free Report) . Shares have lost about 2.6% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is OPKO Health due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
OPKO Health Q2 Earnings and Revenues Beat Estimates
OPKO Health incurred adjusted loss of 10 cents per share in the second quarter of 2019, narrower than the Zacks Consensus Estimate of a loss of 11 cents. The company had incurred a loss of 4 cents per share a year ago.
Second-quarter revenues of this Zacks Rank #4 (Sell) company totaled $226.4 million, which surpassed the Zacks Consensus Estimate of $223.9 million. Further, the top line declined 14.1% on a year-over-year basis.
Segmental Revenues in Q2
Revenues from Services grossed $178.5 million in the reported quarter, down 17.4% year over year.
Revenues from Products inched up 0.7% to $28.7 million. Per management, revenues from products include $5.7 million contributions from RAYALDEE.
Revenues from Transfer of intellectual property came in at $19.2 million, up 0.5% year over year.
RAYALDEE Update
Per management, total RAYALDEE prescriptions reported by IQVIA improved 92% year over year in the second quarter. Further, management at OPKO Health announced that RAYALDEE marketing authorization applications filed by Vifor Fresenius have been accepted for review in several European countries.
Margin Analysis
Gross profit in the reported quarter came in at $82.2 million, down 27.6% from the prior-year quarter. Gross margin was 36.3% of net revenues, down a significant 680 basis points (bps) year over year.
Selling, general and administrative expenses totaled $88.5 million, up 0.9% year over year. Research and development expenses amounted to $28.3 million, down 3.1% year over year.
Operating loss in the second quarter was $47.2 million, much wider than the year-ago quarter’s loss of $5.1 million.
Guidance
OPKO Health did not issue any guidance. However, the company expects improved cash contributions and financial performance owing to RAYALDEE strength in the second half of 2019.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month. The consensus estimate has shifted -5.56% due to these changes.
VGM Scores
At this time, OPKO Health 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 bottom 20% 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.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, OPKO Health has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.