Cubist Pharma Earnings: A Mixed Reaction to Analyst Estimates

Cubist Pharmaceuticals Inc. (NASDAQ:CBST) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. Even though the company still managed to delivered double-digit revenue growth, shares are down 0.58%.

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Cubist Pharmaceuticals Inc. Earnings Cheat Sheet

Results: Net income increased 454.25% to $37.8 million (51 cents per diluted share) in the quarter versus a net gain of $6.82 million in the year-earlier quarter.

Revenue: Rose 15.49% to $245.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Cubist Pharmaceuticals Inc. reported adjusted net income of 51 cents per share. By that measure, the company beat the mean analyst estimate of $0.48. It missed the average revenue estimate of $246.46 million.

Quoting Management: “We continued our strong momentum in the fourth quarter of 2012, capping a significant year of growth for Cubist,” said Michael Bonney, Chief Executive Officer. “With 2012 total revenues of more than $926 million, we grew our top-line by 23%, driven largely by the continued strong performance of the U.S. and international CUBICIN business, as well as a 21% increase in ENTEREG sales…

…And with three exciting Phase 3 product candidates in our pipeline, including our potential blockbuster antibiotic candidate for the treatment of certain Gram negative infections, ceftolozane/tazobactam (CXA-201), we believe we are well-positioned to extend our leadership in the hospital and acute care environment for many years to come.”

Key Stats:

Revenue increased 3.24% from $238.18 million in the previous quarter. Net income decreased 6.25% from $40.32 million in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.44 to a profit $0.41. For the current year, the average estimate has moved down from a profit of $2 to a profit of $1.98 over the last ninety days.

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(Company fundamentals provided by Xignite Financials.)