Dendreon Earnings Approaching

Dendreon Corporation (NASDAQ:DNDN) will unveil its latest earnings on Monday, July 30, 2012. Dendreon is a biotechnology company that discovers, develops, and sells new therapeutics for cancer patients.

Dendreon Corporation Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net loss of 59 cents per share, a narrower loss from the year-earlier quarter net loss of 69 cents. During the past three months, the average estimate has moved down from a loss of 56 cents. Between one and three months ago, the average estimate moved down. It has risen from a loss of 60 cents during the last month.

Past Earnings Performance: Last quarter, the company missed estimates by 5 cents, coming in at a loss of 70 cents per share versus a mean estimate of net loss of 65 cents per share. In the fourth quarter of the last fiscal year, the company beat estimates by 57 cents.

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Wall St. Revenue Expectations: On average, analysts predict $85.8 million in revenue this quarter, a rise of 73.1% from the year-ago quarter. Analysts are forecasting total revenue of $360.8 million for the year, a rise of 69% from last year’s revenue of $213.5 million.

Stock Price Performance: Between April 27, 2012 and July 24, 2012, the stock price fell $4.83 (-42.6%), from $11.35 to $6.51. The stock price saw one of its best stretches over the last year between April 18, 2012 and April 25, 2012, when shares rose for six straight days, increasing 28% (+$2.51) over that span. It saw one of its worst periods between July 2, 2012 and July 13, 2012 when shares fell for nine straight days, dropping 18.8% (-$1.40) over that span.

A Look Back: In the first quarter, the company’s loss narrowed to a loss of $103.9 million (70 cents a share) from a loss of $111.8 million (77 cents) a year earlier, but missed analyst expectations. Revenue rose more than twofold to $82.1 million from $28.1 million.

Key Stats:

The company enters this earnings announcement with substantial revenue momentum. The company has averaged year-over-year revenue growth of more than sevenfold over the last four quarters.

The company’s gross margin shrank by 7.8 percentage points in the in the first quarter. Revenue rose 192.5% while cost of sales rose 227.4% to $60 million from a year earlier.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 7.35 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company regressed in this liquidity measure from 8.62 in the fourth quarter of the last fiscal year to the last quarter driven in part by an increase in liabilities. Current liabilities increased 11.1% to $86.3 million while assets decreased 5.4% to $634.3 million.

Analyst Ratings: There are mostly holds on the stock with 10 of 18 analysts surveyed giving that rating.

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

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