Neurocrine Biosciences Inc. Earnings: Two Straight Quarters of Profit Broken by a Loss

Neurocrine Biosciences Inc. (NASDAQ:NBIX) reported its results for the first quarter. Neurocrine Biosciences discovers, develops, and commercializes drugs for the treatment of neurological and endocrine-related diseases and disorders.

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Neurocrine Biosciences Earnings Cheat Sheet for the First Quarter

Results: Reported a loss of $886,000 (one cent per diluted share) in the quarter. Neurocrine Biosciences Inc. had a net income of $2.9 million or 5 cents per share in the year-earlier quarter.

Revenue: Fell 10% to $11.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Neurocrine Biosciences Inc. was about in line with expectations as the mean analyst estimate was breaking even. It beat the average revenue estimate of $10.8 million.

Quoting Management: “Our operating results were as expected for the first quarter of 2012 and the capital raise in January served to strengthen our financial position,” said Kevin Gorman, Ph.D., President and Chief Executive Officer of Neurocrine Biosciences. “We are pleased with the progress made in elagolix for endometriosis thus far in 2012 including the filing of the Special Protocol Assessment and the recent investigator meeting to launch the Phase III program. Additionally, we continue to make good progress in readying for the next Phase II study of NBI-98854 which will start later this summer.”

Key Stats:

After beating analyst estimates for the two previous quarters, the company fell short of forecasts. In the fourth quarter of the last fiscal year, it topped the mark by one cent, and in the third quarter of the last fiscal year, it was ahead by 47 cents.

After three consecutive quarters of profits, the company declared a loss in the latest quarter. The company reported a profit of $1.3 million in the fourth quarter of the last fiscal year, a profit of $31.4 million in the third quarter of the last fiscal year and $2 million in the second of the last fiscal year.

Revenue has declined for two quarters in a row. In the fourth quarter of the last fiscal year, revenue declined 18.6% to $11.1 million from the year-earlier quarter.

Looking Forward: Expectations for the company’s next-quarter performance are higher than they were ninety days ago. The average estimate for the second quarter is now at a loss of 2 cents per share, up from a loss of 4 cents. For the fiscal year, the average estimate has moved from a loss of 7 cents a share to a loss of 17 cents over the last ninety days.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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