InterMune Earnings Cheat Sheet: Streak of Two Straight Quarters of Expanding Margins Snapped

InterMune, Inc.’s (NASDAQ:ITMN) loss widened in the second quarter, as the company’s results were dragged down by higher costs. InterMune, Inc. is a biotech company, which is focused on developing and commercializing innovative therapies in pulmonology and hepatology.

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InterMune Earnings Cheat Sheet for the Second Quarter

Results: Loss widened to $39.9 million (68 cents per diluted share) from $25.3 million (loss of 46 cents per share) in the same quarter a year earlier.

Revenue: Rose 5.9% to $6.2 million from the year earlier quarter.

Actual vs. Wall St. Expectations: ITMN fell short of the mean analyst estimate of a loss of 61 cents per share. It beat the average revenue estimate of $5.3 million.

Quoting Management: Dan Welch, Chairman, Chief Executive Officer and President of InterMune said, “The second quarter was highlighted by the rapid and substantial progress we made in our preparations to launch Esbriet in the EU in adults for the treatment of mild to moderate idiopathic pulmonary fibrosis, or IPF. We are now in the final stages of preparing to make Esbriet available to patients in Europe, beginning with Germany in September, in a launch that will coincide with the Annual Congress of the European Respiratory Society. We are pleased to report that our German organization is fully staffed, with our sales force undergoing training this month.”

Key Stats:

Gross margin shrank 34.1 percentage points to 46.2%. The contraction appeared to be driven by increased costs, which rose more than twofold from the year earlier quarter while revenue rose 5.9%.

The company fell short of estimates last quarter after beating the mark the quarter before with a loss of 57 cents versus a mean estimate of a loss of 78 cents per share.

Competitors to Watch: Gilead Sciences, Inc. (NASDAQ:GILD), Vertex Pharmaceuticals Inc. (NASDAQ:VRTX), Idenix Pharmaceuticals, Inc. (NASDAQ:IDIX), Amgen, Inc. (NASDAQ:AMGN), Amarillo Biosciences, Inc. (AMAR), Merck & Co., Inc. (NYSE:MRK), Pfizer Inc. (NYSE:PFE), Pharmasset, Inc. (NASDAQ:VRUS), Roche Holding Ltd. (RHHBY), and Anadys Pharmaceuticals, Inc. (NASDAQ:ANDS).

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(Source: Xignite Financials)

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