Isis Pharmaceuticals Earnings: Here’s Why Shares are Down Now

Isis Pharmaceuticals, Inc. (NASDAQ:ISIS) 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 down 2.16%.

Isis Pharmaceuticals, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $-0.09 in the quarter versus EPS of $-0.01 in the year-earlier quarter.

Revenue: Decreased 19.52% to $38.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Isis Pharmaceuticals, Inc. reported adjusted EPS loss of $0.09 per share. By that measure, the company beat the mean analyst estimate of $-0.21. It beat the average revenue estimate of $26.76 million.

Quoting Management: “We had a successful second quarter. We ended the quarter with a significantly improved financial position. We added a new partner, Roche, for one of our severe and rare disease programs. We advanced our broad pipeline of drugs, and we reported positive Phase 2 data from our drug, ISIS-APOCIIIRx. These data support our belief that antisense drugs can be safe and effective treatments for many different diseases. All of these activities have significantly contributed to our financial performance this year and the increase in value of our technology and our drugs in development,” said B. Lynne Parshall, chief operating officer of Isis. “We have a number of key data events to look forward to in the second half of the year as our pipeline and partnerships continue to mature.”
“We ended the second quarter with more than $590 million in cash, which was bolstered by the proceeds from our recent stock offering. We have also received $93 million from our partners so far this year, including, in the second quarter, $30 million from our new collaboration with Roche, $16 million from AstraZeneca and $3.5 million from Biogen Idec for the advancement of ISIS-SMNRx. As our partnered programs advance in development, we have the potential to earn additional milestone payments this year. With our strong cash position, we are now able to take some of our drugs into late-stage clinical studies prior to partnering,” said Elizabeth L. Hougen, chief financial officer of Isis.

Key Stats (on next page)…

Revenue decreased 12.13% from $43.36 million in the previous quarter. EPS increased to $-0.09 in the quarter versus EPS of $-0.02 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a loss of $0.31 to a loss $0.28. For the current year, the average estimate has moved up from a loss of $0.8 to a loss of $0.7 over the last ninety days.

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