Cubist Pharma Earnings: Revenues CLIMB, Beats the Street

Cubist Pharmaceuticals Inc. (NASDAQ:CBST) reported its results for the second quarter. Cubist Pharmaceuticals is focused on the research, development, and commercialization of pharmaceutical products that address unmet medical needs in the acute care environment.

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Cubist Pharmaceuticals Inc. Earnings Cheat Sheet

Results: Reported a profit of $43.1 million (68 cents per diluted share) in the quarter. Cubist Pharmaceuticals Inc. had a net loss of $20.6 million or a loss 34 cents per share in the year-earlier quarter.

Revenue: Rose 30.4% to $230.6 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Cubist Pharmaceuticals Inc. beat the mean analyst estimate of 49 cents per share. Analysts were expecting revenue of $226.1 million.

Key Stats:

Last quarter was the fifth in a row that the company saw shrinking gross margins, as they fell 3.5 percentage points from the year-earlier quarter to 74.5%. In that span, margins have contracted an average of 1.8 percentage points per quarter on a year-over-year basis.

Revenue has risen the past four quarters. Revenue increased 30.2% to $211.7 million in the first quarter. The figure rose 31.6% in the fourth quarter of the last fiscal year from the year earlier and climbed 24.5% in the third quarter of the last fiscal year from the year-ago quarter.

The company has now beaten estimates the last two quarters. In the first quarter, it topped expectations with net income of 45 cents versus a mean estimate of net income of 41 cents per share.

Looking Forward: Analysts have a more positive outlook about the company’s results for next quarter. The average estimate for third quarter is 42 cents per share, an increase from 41 cents sixty days ago. The average estimate for the fiscal year has risen to $1.70 per share from $1.67 in the past month.

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

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