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

Peregrine Pharmaceuticals Inc. (NASDAQ:PPHM) had a loss and met Wall Street’s expectations, AND 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 6.58%.

Peregrine Pharmaceuticals Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $-0.05 in the quarter versus EPS of $-0.08 in the year-earlier quarter.

Revenue: Rose 10.35% to $4.69 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Peregrine Pharmaceuticals Inc. reported adjusted EPS loss of $0.05 per share. By that measure, the company met the mean analyst estimate of $-0.05. It missed the average revenue estimate of $5.84 million.

Quoting Management: “We continue to steadily progress the bavituximab clinical program as we prepare to initiate a global Phase III trial by year-end in second-line non-small cell lung cancer. In addition to Phase III preparations, our researchers and external collaborators have undertaken a flurry of preclinical experimentation that will help guide exciting new combinations and therapeutic areas for bavituximab. This activity was spurred on by recent data showing that bavituximab works by harnessing the body’s natural immune system to fight cancer,” said Steven W. King, president and chief executive officer of Peregrine. “Our preclinical development plan is designed to simultaneously look at new indications and therapeutic regimens including new combinations with other immunotherapy agents. Because bavituximab acts on a primary immune system checkpoint, there are an abundance of possible immunotherapy combinations with agents working on further downstream targets. We expect results from these studies over the coming months as we move toward advancing new combinations into the clinic. We look forward to a number of updates on the program as we move through the rest of the year.”

Key Stats (on next page)…

Revenue decreased 33.38% from $7.04 million in the previous quarter. EPS were the same at $-0.05 in the quarter as EPS of $-0.05 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 $0.04 to a loss $0.06. For the current year, the average estimate has moved down from a loss of $0.20 to a loss of $0.24 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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