SciClone Pharmaceuticals Earnings: Here’s Why Investors Don’t Like These Results

SciClone Pharmaceuticals, Inc. (NASDAQ:SCLN) delivered a profit and missed 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 3%.

SciClone Pharmaceuticals, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 46.67% to $0.08 in the quarter versus EPS of $0.15 in the year-earlier quarter.

Revenue: Decreased 27.28% to $29.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: SciClone Pharmaceuticals, Inc. reported adjusted EPS income of $0.08 per share. By that measure, the company missed the mean analyst estimate of $0.11. It missed the average revenue estimate of $33.3 million.

Quoting Management: Friedhelm Blobel, Ph.D., SciClone Chief Executive Officer, commented: “We are pleased to report that the ZADAXIN channel inventory build-up that slowed revenue growth in the last three quarters has been resolved. We are encouraged by the growth in hospital demand for ZADAXIN compared to the year ago period, which underscores ZADAXIN’s importance as a growth driver for our Company, and which we anticipate to continue through the second half of the year. While we are disappointed by the decrease in revenue for the first half of 2013, these results were in line with our expectations. With channel inventory at normal levels, and with excellent progress on building our team, we are focusing on reestablishing our Company’s growth trajectory as well as our ongoing efforts to operate with the highest levels of compliance.”

Key Stats (on next page)…

Revenue decreased 18.9% from $36.13 million in the previous quarter. EPS increased 166.67% from $0.03 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.10 to a profit $0.12. For the current year, the average estimate has moved up from a profit of $0.61 to a profit of $0.63 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)