Momenta Pharmaceuticals Earnings: Here’s Why Investors are Not Excited Now

Momenta Pharmaceuticals Inc. (NASDAQ:MNTA) had a loss and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 4.40%.

Momenta Pharmaceuticals Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.06 in the quarter versus EPS of $-0.20 in the year-earlier quarter.

Revenue: Decreased 79.87% to $4.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Momenta Pharmaceuticals Inc. reported adjusted EPS loss of $0.06 per share. By that measure, the company beat the mean analyst estimate of $-0.45. It missed the average revenue estimate of $8.85 million.

Quoting Management: “We are extremely pleased with the recent opinion by the Federal Circuit that found several Copaxone(NYSE:R) patents Teva asserted against Momenta and Sandoz invalid,” said Craig A. Wheeler, President and Chief Executive Officer of Momenta Pharmaceuticals. “The Court’s decision clears the path to potentially launch M356, generic Copaxone, in the U.S. after the remaining patents expire in May 2014, pending FDA approval.
“In addition to the favorable Federal Circuit ruling, our 2013 achievements include advancing our lead biosimilar product M923 toward a planned IND submission in 2014 and executing on objectives for our biosimilars and novel drug programs,” continued Mr. Wheeler.

Key Stats (on next page)…

Revenue decreased 42.11% from $7.6 million in the previous quarter. EPS decreased to $-0.06 in the quarter versus EPS of $-0.48 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a loss of $0.46 and has not changed. For the current year, the average estimate has moved up from a loss of $1.89 to a loss of $1.86 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]