Medicines Co. Earnings: Here’s Why Shares are Down Now

Medicines Co. (NASDAQ:MDCO) 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 down 2.08%.

Medicines Co. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 117.39% to $0.5 in the quarter versus EPS of $0.23 in the year-earlier quarter.

Revenue: Rose 27.34% to $172.8 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Medicines Co. reported adjusted EPS income of $0.5 per share. By that measure, the company beat the mean analyst estimate of $0.34. It beat the average revenue estimate of $168.73 million.

Quoting Management: Glenn Sblendorio, President and Chief Financial Officer of The Medicines Company, stated, “Our first half 2013 revenues show a continued diversification of growth sources, as our hospital portfolio and global geographies expand. Additionally, our near term anticipated growth drivers advanced significantly in the second quarter, as we reported positive Phase 3 results of the oritavancin Phase 3 SOLO II trial, filed for US approval for cangrelor, and completed clinical work toward filings for IONSYS.”

Key Stats (on next page)…

Revenue increased 10.95% from $155.75 million in the previous quarter. EPS increased to $0.5 in the quarter versus EPS of $-0.21 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 profit of $0.39 to a profit $0.4. For the current year, the average estimate has moved up from a profit of $0.93 to a profit of $0.98 over the last ninety days.

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