Ligand Pharmaceuticals Earnings: Here’s Why Investors are Excited Now

Ligand Pharmaceuticals (NASDAQ:LGND) delivered a profit 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 4.73%.

Ligand Pharmaceuticals Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $0.07 in the quarter versus EPS of $-0.11 in the year-earlier quarter.

Revenue: Rose 66.9% to $9.58 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Ligand Pharmaceuticals reported adjusted EPS income of $0.07 per share. By that measure, the company beat the mean analyst estimate of $0.05. It beat the average revenue estimate of $9.3 million.

Quoting Management: “We have had a very strong first half in 2013, and the coming quarters look promising as we anticipate further growth in royalty revenue, potential approvals for a new royalty-bearing drug and label expansions, NDA filings for partnered products and completing our first full year of operational profitability,” commented John Higgins, President and Chief Executive Officer of Ligand. “We are proud of the important preclinical, clinical, regulatory and business development accomplishments made by Ligand and our partners since the close of the first quarter. Our solid operational execution and financial performance is facilitating our transition to a growth company with strong earnings potential.”

Key Stats (on next page)…

Revenue decreased 17.77% from $11.65 million in the previous quarter. EPS decreased 56.25% from $0.16 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 profit of $0.10 to a profit $0.09. For the current year, the average estimate has moved up from a profit of $0.46 to a profit of $0.54 over the last ninety days.

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