Ariad Pharmaceuticals Earnings: Here’s Why Shares are Down Now

Ariad Pharmaceuticals Inc. (NASDAQ:ARIA) had a loss and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 3.56%.

Ariad Pharmaceuticals Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $-0.37 in the quarter versus EPS of $-0.31 in the year-earlier quarter.

Revenue: Rose 4275% to $14 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Ariad Pharmaceuticals Inc. reported adjusted EPS loss of $0.37 per share. By that measure, the company beat the mean analyst estimate of $-0.4. It beat the average revenue estimate of $11.11 million.

Quoting Management: “Our second-quarter results demonstrate strong growth of Iclusig sales in the U.S.,” said Harvey J. Berger, M.D., chairman and chief executive officer of ARIAD. “During the quarter, we saw a definitive shift in new-patient starts with Iclusig to earlier lines of therapy. We are continuing to build on this robust launch and expect to have between 1,000 and 1,100 patients treated with Iclusig by the end of this year. Additionally, we now have approval of Iclusig in Europe and are working with the national health authorities to obtain reimbursement decisions so that we can make Iclusig available broadly to Philadelphia-positive leukemia patients.”

Key Stats (on next page)…

Revenue increased 116.72% from $6.46 million in the previous quarter. EPS increased to $-0.37 in the quarter versus EPS of $-0.36 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a loss of $0.43 and has not changed. For the current year, the average estimate has moved down from a loss of $1.65 to a loss of $1.66 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)