Allos Therapeutics Inc. Earnings: Two-Quarter Shrinking Margin Streak Ends

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Allos Therapeutics, Inc. (NASDAQ:ALTH) reported a loss in the fourth quarter as its quarterly loss narrowed helped by rising revenue. Allos Therapeutics is a biopharmaceutical company focused on developing and commercializing innovative small molecule drugs for the treatment of cancer.

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Allos Therapeutics Earnings Cheat Sheet for the Fourth Quarter

Results: Loss narrowed to $1.2 million (loss of one cent per diluted share) from $18.1 million (loss of 17 cents per share) in the same quarter a year earlier.

Revenue: Rose 44.5% to $16.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Allos Therapeutics, Inc. beat the mean analyst estimate of a loss of 8 cents per share. It beat the average revenue estimate of $15.9 million.

Quoting Management: “We are pleased with the sales growth we achieved in 2011 and the continued increase in market penetration, disease-state awareness and brand awareness of FOLOTYN for patients with relapsed or refractory peripheral T-cell lymphoma,” commented Paul L. Berns, president and chief executive officer of Allos Therapeutics. “We enter 2012 with a strong cash position and remain focused on growing U.S. sales of FOLOTYN while prudently managing our operating expenses to drive toward future profitability. Also, in collaboration with Mundipharma, we continue to pursue regulatory approval for FOLOTYN in the EU and other ex-U.S. geographies as well as future label expansion opportunities in T-cell lymphoma.”

Key Stats:

The company has seen double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of more than twofold, with the biggest boost coming in the second quarter when revenue rose more than fourfold from the year earlier quarter.

The company has now surpassed analyst estimates for four quarters in a row. It beat the mark by 4 cents in the third quarter, by 16 cents in the second quarter, and by one cent in the first quarter.

Margins increased in the third quarter after dropping the quarter before. Gross margin grew 3.6 percentage points from the year-earlier quarter to 92.4%. In the second quarter, the figure rose 0.9 percentage point to 88.3% from the year earlier quarter.

Looking Forward: Analysts seem more positive about the company’s results for the next quarter than sixty days ago. The average estimate for the first quarter of the next fiscal year has moved from a loss of 9 cents a share to a loss of 6 cents over the last sixty days. Over the past sixty days, the average estimate for the fiscal year has risen from a loss of 39 cents to a loss of 36 cents.

(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

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