Questcor Pharmaceuticals Earnings: Here’s Why Investors are Buying Shares Now

Questcor Pharmaceuticals, Inc. (NASDAQ:QCOR) delivered a profit 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 up 13.62%.

Questcor Pharmaceuticals, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 62.32% to $1.12 in the quarter versus EPS of $0.69 in the year-earlier quarter.

Revenue: Rose 64.16% to $184.6 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Questcor Pharmaceuticals, Inc. reported adjusted EPS income of $1.12 per share. By that measure, the company beat the mean analyst estimate of $1. It beat the average revenue estimate of $168.98 million.

Quoting Management: “Our commercial expansion effort continues, most recently driven by increasing usage of Acthar among rheumatologists,” said Don M. Bailey, President and CEO of Questcor. “The foundation for potential additional growth over the near-, medium- and long-term continues to strengthen. The first full quarter of our commercial rheumatology effort generated over 300 prescriptions, marking the best Acthar launch into a new therapeutic area that we have yet experienced. This rapid success has encouraged us to accelerate our entry into pulmonology, where we recently announced a pilot commercialization effort for respiratory manifestations of symptomatic sarcoidosis, a labeled indication for Acthar. We also continue to assess additional indications on the Acthar label for other commercial opportunities, as well as explore the use of Acthar for possible new indications, as demonstrated by the initiation of our Phase 2 study in amyotrophic lateral sclerosis (ALS). This is our second phase 2 trial, as we continue to proceed with our trial in diabetic nephropathy. Additionally, in the second quarter we acquired the rights to Synacthen®, which will further expand our melanocortin peptide R&D program. This action provides us a platform for potential further U.S. growth and the initiation of international commercial activity for Synacthen and potentially for Acthar.”

Key Stats (on next page)…

Revenue increased 36.61% from $135.13 million in the previous quarter. EPS increased 47.37% from $0.76 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 profit of $1.1 to a profit $1.07. For the current year, the average estimate has moved down from a profit of $4.18 to a profit of $3.96 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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