Neurocrine Biosciences Inc. Earnings: Weak Revenue and Net Income

Neurocrine Biosciences Inc. (NASDAQ:NBIX) posted a decrease in profit as revenue declined. 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 Fourth Quarter

Results: Net income for the biotechnology company fell to $1.3 million (2 cents per share) vs. $2.5 million (4 cents per share) a year earlier. This is a decline of 46.5% from the year earlier quarter.

Revenue: Fell 18.6% to $11.1 million from the year earlier quarter.

Actual vs. Wall St. Expectations: Neurocrine Biosciences Inc. beat the mean analyst estimate of one cent per share. It fell short of the average revenue estimate of $12.1 million.

Quoting Management: “During 2011, we maintained our financial discipline and performed to plan,” said Kevin C. Gorman, President and CEO of Neurocrine Biosciences. “From a scientific perspective we completed our first open-label Phase II study of our VMAT2 inhibitor, NBI-98854. We also opened the related IND for NBI-98854 in the United States, and recently completed enrollment in our placebo controlled double-blind Phase II study of VMAT2 which will read out later this quarter. Elagolix continued to move forward with our partner Abbott, starting a Phase II study in uterine fibroids, and more recently filing for an SPA with the FDA for endometriosis. Additionally, we have several novel compounds that were discovered by our research group during 2011 that we will continue to work on in 2012, with the goal of beginning the IND process on at least one of these novel compounds by year end.”

Key Stats:

A year-over-year revenue decrease last quarter snaps a streak of four consecutive quarters of revenue increases. The best quarter in that span was the fourth quarter of the last fiscal year, which saw revenue rise 1745.5%.

The company has now beaten estimates the last two quarters. In the third quarter, it topped expectations with net income of 56 cents versus a mean estimate of net income of 9 cents per share.

Looking Forward: Analysts seem more negative about the company’s results for the next quarter than a month ago. The average estimate for the first quarter of the next fiscal year has moved from a loss of one cent a share to a loss of 5 cents over the last thirty days. The average estimate for the fiscal year is 66 cents per share, a rise from 65 cents ninety days ago.

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

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com