Ironwood Pharmaceuticals Earnings: Here’s Why Investors Don’t Like These Results

Ironwood Pharmaceuticals Inc. (NASDAQ:IRWD) had a loss and missed Wall Street’s expectations, AND 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 5.17%.

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Ironwood Pharmaceuticals Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.87 in the quarter versus EPS of $-0.34 in the year-earlier quarter.

Revenue: Decreased 73.06% to $3.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Ironwood Pharmaceuticals Inc. reported adjusted EPS loss of $0.87 per share. By that measure, the company missed the mean analyst estimate of $-0.64. It missed the average revenue estimate of $8.94 million.

Quoting Management: “We and Forest have made significant process advancing LINZESS during the first few months of commercialization, and the positive response from patients and physicians is very encouraging,” said Tom McCourt, chief commercial officer and senior vice president, marketing and sales. “There have been a number of favorable early decisions made by key national payers, and the integrated Ironwood and Forest sales and marketing team is executing at a high level. While it’s still early, and we have more work to do to deliver LINZESS to patients in need, everything we are seeing reinforces the substantial opportunity for LINZESS to treat adults with IBS-C or CIC and to dramatically grow this category over the coming years.”

Key Stats (on next page)…

Revenue decreased 87.77% from $26.98 million in the previous quarter. EPS decreased to $-0.87 in the quarter versus EPS of $-0.41 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 $0.56 to a loss $0.59. For the current year, the average estimate is a loss of $2.21, which is the same with that ninety days ago.

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

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