Ironwood Pharmaceuticals Earnings: Here’s Why Investors are Happy Now

Ironwood Pharmaceuticals Inc. (NASDAQ:IRWD) had a loss and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 6.95%.

Ironwood Pharmaceuticals Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $-0.57 in the quarter versus EPS of $-0.38 in the year-earlier quarter.

Revenue: Decreased 33.56% to $9.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Ironwood Pharmaceuticals Inc. reported adjusted EPS loss of $0.57 per share. By that measure, the company beat the mean analyst estimate of $-0.68. It beat the average revenue estimate of $6.32 million.

Quoting Management: “The past six months have been a transformative period at Ironwood, thanks to the dedication and hard work of our team,” said Peter Hecht, chief executive officer of Ironwood. “The LINZESS launch is strong and tracking well across all leading indicators, and we and Forest are working closely together to drive all aspects of the launch. At the same time, together with Forest we are making progress in our efforts to maximize the commercial and clinical success of LINZESS by exploring ways to strengthen the existing label and seeking regulatory approval for LINZESS in additional populations and indications. During the second quarter, Almirall launched CONSTELLA in key European countries, and we continue to advance linaclotide in territories around the world along with our partners. We also continued to make progress with our other pipeline programs. We look forward to advancing our key value drivers and managing investments across our portfolio to maximize per share value for our fellow shareholders.”

Key Stats (on next page)…

Revenue increased 197.55% from $3.26 million in the previous quarter. EPS decreased to $-0.57 in the quarter versus EPS of $-0.87 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 loss of $0.55 to a loss $0.65. For the current year, the average estimate has moved down from a loss of $2.27 to a loss of $2.78 over the last ninety days.

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