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

Medicines Co. (NASDAQ:MDCO) 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 1.83%.

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

Medicines Co. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.21 in the quarter versus EPS of $0.14 in the year-earlier quarter.

Revenue: Rose 23.06% to $155.8 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Medicines Co. reported adjusted EPS loss of $0.21 per share. By that measure, the company beat the mean analyst estimate of $-0.26. It beat the average revenue estimate of $152.63 million.

Quoting Management: Glenn Sblendorio, President and Chief Financial Officer of The Medicines Company, stated, “First quarter 2013 revenue growth puts us on a positive trajectory this year and continues momentum from recent performance and net loss for the quarter is slightly better than our guidance. We also advanced our portfolio of acute and intensive care hospital medicines, as we recently completed enrollment in the oritavancin Phase 3 SOLO-2 trial and reported the positive results of the Phase 3 cangrelor PHOENIX trial. We also added to the portfolio three new assets, including the acquisition of IONSYS and the license of Recothrom and the PCSK9 program.”

Key Stats (on next page)…

Revenue decreased 2.31% from $159.49 million in the previous quarter. EPS decreased to $-0.21 in the quarter versus EPS of $0.38 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 $0.68 to a profit $0.34. For the current year, the average estimate has moved down from a profit of $1.50 to a profit of $0.93 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

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

More Articles About:   , ,  

More from The Cheat Sheet