Arena Pharma Earnings SNEAK PREVIEW

Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) will unveil its latest earnings today, Thursday, August 9, 2012.

Arena Pharmaceuticals, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for a loss of 8 cents per share, a narrower loss from the year-earlier quarter net loss of 16 cents. During the past three months, the average estimate has moved up from a loss of 12 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at a loss of 8 cents during the last month.

Past Earnings Performance: For the past three quarters, the company’s quarterly results have come in below analyst’s expectations. Last quarter, the company reported net loss of 15 cents per share versus a mean estimate of a loss of 13 cents per share.

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Wall St. Revenue Expectations: Analysts predict a rise of more than twofold in revenue from the year-earlier quarter to $7.4 million.

Stock Price Performance: Between May 9, 2012 and August 8, 2012, the stock price rose $3.88 (113.45%), from $3.42 to $7.30. The stock price saw one of its best stretches over the last year between June 7, 2012 and June 21, 2012, when shares rose for 11 straight days, increasing 81.9% (+$5.26) over that span. It saw one of its worst periods between July 13, 2012 and July 20, 2012 when shares fell for six straight days, dropping 14.9% (-$1.66) over that span.

A Look Back: In the first quarter, the company’s loss narrowed to a loss of $26.6 million (18 cents a share) from a loss of $39.9 million (35 cents) a year earlier, but missed analyst expectations. Revenue fell 44.2% to $2.2 million from $3.9 million.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of two-straight quarters of revenue declines. Revenue fell 48.3% in the fourth quarter of the last fiscal year and dropped again in the first quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 7.55 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands.

Analyst Ratings: There are mostly holds on the stock with six of nine analysts surveyed giving that rating.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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