Medivation Earnings: Here’s Why the Stock is Falling Now

Medivation, Inc. (NASDAQ:MDVN) 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 1.05%.

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Medivation, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.36 in the quarter versus EPS of $0.01 in the year-earlier quarter.

Revenue: Rose 25.31% to $46.15 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Medivation, Inc. reported adjusted EPS loss of $0.36 per share. By that measure, the company beat the mean analyst estimate of $-0.41. It beat the average revenue estimate of $38.54 million.

Quoting Management: “We are pleased with the positive market response to XTANDI in the first quarter of 2013, which provides a strong start to the year as we look forward to the potential approval and launch of enzalutamide in Europe and other markets for post-chemotherapy metastatic castration-resistant prostate cancer patients, the results from the planned interim analysis for the PREVAIL trial in pre-chemotherapy metastatic castration-resistant prostate cancer patients, which if positive, could potentially support a new indication for XTANDI, and the initiation of a Phase 3 trial in non-metastatic patients with castration-resistant prostate cancer,” said David Hung, M.D., president and chief executive officer of Medivation, Inc. “The expertise of our three new board members will be extremely valuable as we further scale our organization to fully capture both existing and future opportunities to transform the treatment of patients with serious illness.”

Key Stats (on next page)…

Revenue increased 24.19% from $37.16 million in the previous quarter. EPS decreased to $-0.36 in the quarter versus EPS of $-0.43 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 $0.14 to a loss $0.27. For the current year, the average estimate has moved down from a loss of $0.81 to a loss of $1.11 over the last ninety days.

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

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