Cubist Pharmaceuticals Earnings: Here’s Why Investors are Selling Shares Now

Cubist Pharmaceuticals Inc. (NASDAQ:CBST) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 2.36%.

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Cubist Pharmaceuticals Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 24.44% to $0.34 in the quarter versus EPS of $0.45 in the year-earlier quarter.

Revenue: Rose 8.6% to $229.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Cubist Pharmaceuticals Inc. reported adjusted EPS income of $0.34 per share. By that measure, the company beat the mean analyst estimate of $0.31. It missed the average revenue estimate of $243.55 million.

Quoting Management: “As we enter this next chapter for the Company, Cubist continues to deliver solid financial results while driving continued growth,” said Michael Bonney, CEO of Cubist. “We continue to enhance our leadership team and took several important growth-focused actions during the quarter, including obtaining rights to expand our acute care pipeline through our option agreement with Adynxx and securing the worldwide commercialization rights to our potential blockbuster candidate, ceftolozane/tazobactam. We are making solid progress toward our Building Blocks of Growth and are well-positioned to extend our leadership in the hospital and acute care environment.”

Key Stats (on next page)…

Revenue decreased 6.51% from $245.92 million in the previous quarter. EPS decreased 63.44% from $0.93 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 $0.47 to a profit $0.39. For the current year, the average estimate has moved down from a profit of $1.88 to a profit of $1.42 over the last ninety days.

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

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