Cubist Pharmaceuticals, Inc. Third Quarter Earnings Sneak Peek

Cubist Pharmaceuticals, Inc. (NASDAQ:CBST) will unveil its latest earnings on Wednesday, October 19, 2011. Cubist Pharmaceuticals is focused on the research, development, and commercialization of pharmaceutical products that address unmet medical needs in the acute care environment.

Cubist Pharmaceuticals, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 32 cents per share, a decline of 36% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from a loss of 22 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 32 cents during the last month. Analysts are projecting profit to rise by 58.4% versus last year to 72 cents.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 10 cents, reporting net income of 51 cents per share against a mean estimate of profit of 41 cents per share.

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Wall St. Revenue Expectations: On average, analysts predict $182.9 million in revenue this quarter, a rise of 12.9% from the year ago quarter. Analysts are forecasting total revenue of $711.7 million for the year, a rise of 11.8% from last year’s revenue of $636.5 million.

Analyst Ratings: 11 out of 15 analysts surveyed (73.3%) have a buy rating on Cubist Pharmaceuticals.. This is below the mean analyst rating of 10 competitors, which average 79.8% buy ratings.

A Look Back: In the second quarter, the company swung to a loss of $20.6 million (34 cents a share) from a profit of $28.1 million (45 cents) a year earlier, but beat analyst expectations. Revenue rose 4.9% to $176.8 million from $168.5 million.

Key Stats:

Cubist Pharmaceuticals’ loss in the latest quarter followed profits in the previous three quarters. The company reported a profit of $22.6 million in the first quarter, a profit of $14.6 million in the fourth of the last fiscal year and a profit of $31.2 million in the third quarter of the last fiscal year.

The company’s revenue has risen for two straight quarters. In the first quarter, the figure rose 12.8%.

Competitors to Watch: Optimer Pharmaceuticals, Inc. (NASDAQ:OPTR), Merck & Co., Inc. (NYSE:MRK), Teva Pharmaceutical Industries Ltd (NASDAQ:TEVA), Theravance, Inc. (NASDAQ:THRX), Pfizer Inc. (NYSE:PFE), Novartis AG (NYSE:NVS), The Medicines Company (NASDAQ:MDCO) and Abbott Laboratories (NYSE:ABT).

Stock Price Performance: During September 15, 2011 to October 13, 2011, the stock price had risen $4.86 (14.7%) from $33.16 to $38.02. The stock price saw one of its best stretches over the last year between September 12, 2011 and September 20, 2011 when shares rose for seven-straight days, rising 10.9% (+$3.46) over that span. It saw one of its worst periods between February 14, 2011 and February 23, 2011 when shares fell for seven-straight days, falling 4.3% (-97 cents) over that span. Shares are up $16.62 (+77.7%) year to date.

(Source: Xignite Financials)

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