InterMune Second Quarter Earnings Sneak Peek

InterMune, Inc. (NASDAQ:ITMN) will unveil its latest earnings on Monday, July 23, 2012. InterMune is a biotech company, which is focused on developing and commercializing innovative therapies in pulmonology and hepatology.

InterMune, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net loss of 18 cents per share, a narrower loss from the year-earlier quarter net loss of 68 cents. During the past three months, the average estimate has moved up from a loss of 74 cents. Between one and three months ago, the average estimate moved up. It has risen from a loss of 41 cents during the last month.

Past Earnings Performance: The company missed estimates last quarter after beating forecasts in the prior two. In the first quarter, the company reported a loss of 74 cents per share versus a mean estimate of net loss of 71 cents per share. In the fourth quarter of the last fiscal year, the company beat estimates by 2 cents.

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Wall St. Revenue Expectations: On average, analysts predict $36.5 million in revenue this quarter, a rise of more than fivefold from the year-ago quarter. Analysts are forecasting total revenue of $73.1 million for the year, a rise of more than twofold from last year’s revenue of $25.6 million.

A Look Back: In the first quarter, the company’s loss widened to a loss of a $46.6 million (72 cents a share) from a loss of $32.1 million (57 cents) a year earlier, missing analyst expectations. Revenue rose 40.7% to $8.9 million from $6.4 million.

Stock Price Performance: Between May 18, 2012 and July 17, 2012, the stock price had risen $1.82 (18.1%), from $10.08 to $11.90. The stock price saw one of its best stretches over the last year between June 12, 2012 and June 19, 2012, when shares rose for six straight days, increasing 25.7% (+$2.50) over that span. It saw one of its worst periods between November 11, 2011 and November 21, 2011 when shares fell for seven straight days, dropping 16% (-$3.43) over that span.

Key Stats:

On the top line, the company is looking to build a positive trend after last quarter’s growth snapped a string of drops. Revenue fell 7.5% in the third quarter of the last fiscal year and 96.8% in the fourth quarter of the last fiscal year before climbing in the first quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 10.71 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 13.0 in the fourth quarter of the last fiscal year to the last quarter driven in part by an increase in liabilities. Current liabilities increased 10.8% to $37.8 million while assets decreased 8.7% to $404.6 million.

Analyst Ratings: There are 10 out of 15 analysts surveyed (66.7%) rating InterMune a buy.

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

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