Quantcast
Featured Image

OPKO Health, Inc.  OPK incurred adjusted loss of 8 cents per share in fourth-quarter 2018, narrower than the Zacks Consensus Estimate of a loss of 9 cents. The company had incurred a loss of 12 cents per share in the year-ago quarter.

On a GAAP basis, the Zacks Rank #3 (Hold) company incurred a loss of 13 cents per share.

Revenues totaled $221.9 million, which missed the Zacks Consensus Estimate of $242 million. However, on a year-over-year basis, the top line increased 37.8%.

2018 at a Glance

Net revenues in 2018 totaled $990.3 million, up 2.5% on a year-over-year basis. Notably, this Florida-based diagnostics and pharmaceuticals company reports through three major segments - Services, Products and Transfer of intellectual property.

While revenues from services accounted for 82.1% of net revenues, the same from products accounted for 10.8%. Transfer of intellectual property accounted for 7.1% of net revenues.

OPKO Health, Inc. Price, Consensus and EPS Surprise

OPKO Health, Inc. Price, Consensus and EPS Surprise | OPKO Health, Inc. Quote

Segment Revenues in Q4

Revenues from Services grossed $183.1 million in the reported quarter, up 53.4% year over year.

Revenues from Products decreased 24.9% to $25.4 million. Per management, revenues from products include $6 million contributions from RAYALDEE.

Revenues from Transfer of intellectual property came in at $13.4 million, up 71.8% year over year.

RAYALDEE Update

Per management, total RAYALDEE prescriptions reported by IQVIA improved 166% year over year in the fourth quarter. Further, management at OPKO Health announced that it partnered Vifor Fresenius and Japan Tobacco to develop RAYALDEE for patients with Stage 5 CKD who have secondary hyperparathyroidism (SHPT), vitamin D insufficiency and are undergoing regular hemodialysis. Notably, a Phase 2 trial is currently underway in the United States.

Margin Analysis

Gross profit in the reported quarter came in at $149.6 million, down 4.5% from the prior-year quarter. Gross margin was 32.6% of net revenues, up significantly year over year.

Selling, general and administrative expenses totaled $95.1 million, down 0.8% year over year. Research and development expenses amounted to $33.3 million, down 2.6% year over year.                 

Adjusted operating loss in the fourth quarter was $56.1 million.

Guidance

For the first quarter of 2019, management expects revenues from Services between $175 million and $190 million.

Product revenues are expected within $28-$32 million, including revenues for RAYALDEE between $6.7 million and $7.5 million.

Revenues from Transfer of intellectual property are anticipated in the $15-$20 million band.

OPKO Health expects costs and expenses to be between $280 million and $290 million, including research and development expenses of $33-$38 million in the fourth quarter.

Summing Up

OPKO Health exited the fourth quarter on a mixed note. While adjusted loss per share was narrower than expected, revenues missed the Zacks Consensus Estimate. Contribution from RAYALDEE has been significant in the quarter under review. Also, OPKO Health's utilization of the 4Kscore remains strong, with nearly 20,000 tests registered in the fourth quarter.

Furthermore, OPKO Health announced that the FDA has approved the company's point-of-care Sangia Total PSA Test using the Claros 1 Analyzer. These apart, the company's clinical development programs look promising with a robust pipeline of candidates. Several metabolic and endocrinology programs that are underway should provide OPKO Health a competitive advantage.

Meanwhile, the operating margins look pressed at the moment. Also, the company faces cutthroat competition in the MedTech space. Moreover, the decline in R&D expenses indicates reduced focus on innovation. Sluggishness in the Product revenue segment is an added headwind.

Earnings of MedTech Majors at a Glance

Some better-ranked MedTech stocks that delivered solid results in the respective quarters are Varian Medical Systems VAR , AngioDynamics ANGO and CONMED Corporation CNMD .

Varian reported fiscal first-quarter adjusted EPS of $1.06, in line with the Zacks Consensus Estimate. Revenues of $741 million outpaced the consensus mark of $717.9 million. The stock has a Zacks Rank #2 (Buy).

AngioDynamics' fiscal second-quarter adjusted EPS of 22 cents exceeded the Zacks Consensus Estimate by a penny. Revenues totaled $91.5 million, which surpassed the consensus estimate by 2.9%. The stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .

CONMED delivered fourth-quarter adjusted EPS of 73 cents, in line with the Zacks Consensus Estimate. Revenues of $242.4 million exceeded the Zacks Consensus Estimate of $229.2 million. The stock carries a Zacks Rank of 2.

Zacks' Top 10 Stocks for 2019

In addition to the stocks discussed above, wouldn't you like to know about our 10 finest buy-and-holds for the year?

From more than 4,000 companies covered by the Zacks Rank, these 10 were picked by a process that consistently beats the market. Even during 2018 while the market dropped -5.2%, our Top 10s were up well into double-digits. And during bullish 2012 - 2017, they soared far above the market's +126.3%, reaching +181.9%.

This year, the portfolio features a player that thrives on volatility, an AI comer, and a dynamic tech company that helps doctors deliver better patient outcomes at lower costs.

See Stocks Today >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

AngioDynamics, Inc. (ANGO): Free Stock Analysis Report

OPKO Health, Inc. (OPK): Free Stock Analysis Report

Varian Medical Systems, Inc. (VAR): Free Stock Analysis Report

CONMED Corporation (CNMD): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of NASDAQ, Inc.

Related Articles