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InterMune, Inc. (NASDAQ:ITMN) reported a drop to a loss in the fourth quarter driven by higher costs. InterMune is a biotech company, which is focused on developing and commercializing innovative therapies in pulmonology and hepatology.
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InterMune Earnings Cheat Sheet for the Fourth Quarter
Results: Reported a loss of $44.5 million (69 cents per diluted share) in the quarter. The biotechnology company had net income of $206.1 million or $3.34 per share in the year earlier quarter.
Revenue: Fell 96.8% to $7.8 million from the year earlier quarter.
Actual vs. Wall St. Expectations: InterMune, Inc. beat the mean analyst estimate of a loss of 71 cents per share. Analysts were expecting revenue of $7.9 million.
Quoting Management: Dan Welch, Chairman, Chief Executive Officer and President of InterMune said, “The fourth quarter was the first full quarter of the commercial launch of Esbriet in Germany, marking the first commercial launch in Europe of an approved therapy for idiopathic pulmonary fibrosis (NYSE:IPF). We are very pleased that the Esbriet launch is off to a very strong start and is among the most successful launches of a specialty product in Germany in terms of revenue and new patient prescriptions. We are also very encouraged by the new Forced Vital Capacity (FVC) and survival data from our RECAP study which illustrates favorable outcomes observed in IPF patients treated with pirfenidone for a year or more.”
Gross margins fell 25 percentage points to 74.5%. The contraction appeared to be driven by falling revenue, as the figure fell 96.8% from the year earlier while costs rose 61.1%.
The company has now beaten estimates the last two quarters. In the third quarter, it topped expectations with a loss of -63 cents versus a mean estimate of a loss of 73 cents per share.
Revenue has fallen in the past two quarters. In the third quarter, revenue declined 7.5% to $5.2 million from the year earlier quarter.
Looking Forward: Analysts seem more positive about the company’s results for the next quarter than a month ago. The average estimate for the first quarter of the next fiscal year has moved from a loss of 71 cents a share to a loss of 64 cents over the last thirty days. Over the past ninety days, the average estimates for the fiscal year has risen from a loss of $2.63 per share to a loss of $2.59.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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