Insmed Inc. Earnings Cheat Sheet: Loss Widens, Falls Below Estimates

Insmed Inc. (INSM) reported its results for the third quarter. Insmed is a biopharmaceutical company focused on the development and commercialization of drugs to treat metabolic diseases and endocrine disorders within niche markets that have unmet medical needs.

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Insmed Earnings Cheat Sheet for the Third Quarter

Results: Loss widened to $34.6 million ($1.39 per diluted share) from $330,000 (loss of 3 cents per share) in the same quarter a year earlier. This quarter’s loss includes a $26 million impairment charge.

Revenue: Fell 77.9% to $400,000 from the year earlier quarter.

Actual vs. Wall St. Expectations: INSM fell short of the mean analyst estimate of a loss of 28 cents per share.

Quoting Management: “Insmed is currently undertaking a comprehensive evaluation of next steps for our ARIKACE program, which we expect to conduct in an expeditious manner,” said Timothy Whitten, Insmed’s President and CEO. “We are keeping all of our options open in regards to the potential future of ARIKACE, and intend to update the market after we have more definitive insight regarding our path forward.”

Key Stats:

The company has now missed analyst estimates for the last four quarters. It fell short by 7 cents in the second quarter, by 5 cents in the first quarter, and by 38 cents in the fourth quarter of the last fiscal year.

Revenue has fallen in the past four quarters. Revenue declined 47.5% to $978,000 in the second quarter. The figure fell 17% in the first quarter from the year earlier and dropped 86.5% in the fourth quarter of the last fiscal year from the year-ago quarter.

Looking Forward: Analysts seem more positive about the company’s results for the next quarter than a month ago. The average estimate for the fourth quarter has moved from a loss of 45 cents a share to a loss of 28 cents over the last thirty days. For the fiscal year, the average estimate has moved from a loss of $2.03 a share to a loss of $1.35 over the last sixty days.

Competitors to Watch: Pfizer Inc. (NYSE:PFE), Bristol Myers Squibb Co. (NYSE:BMY), Cephalon, Inc. (NASDAQ:CEPH), AVI BioPharma, Inc. (NASDAQ:AVII), Merck & Co., Inc. (NYSE:MRK), Eli Lilly & Co. (NYSE:LLY), Amgen, Inc. (NASDAQ:AMGN), Abbott Laboratories (NYSE:ABT), and Array BioPharma Inc. (NASDAQ:ARRY).

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