Cubist Pharmaceuticals Inc.
) is all set to report its third quarter 2012 results on October
18, 2012. The Zacks Consensus Estimate for the third quarter is 45
cents, representing a year-over-year increase of 35.26%.
Second quarter 2012 recap
Cubist Pharma's second quarter 2012 earnings (excluding special
items but including stock-based compensation expense) came in at 68
cents per share, up 28.3% from the year-ago period.
Reported earnings came in at 58 cents compared with a loss of 34
cents in the year-ago quarter. The earnings results comfortably
surpassed the Zacks Consensus Estimate of 48 cents. Results in the
quarter were primarily driven by strong sales of antibiotic
injection, Cubicin (daptomycin) in the US.
Revenue in the second quarter of 2012 climbed 30.0% to $230.6
million, beating the Zacks Consensus Estimate of $226.0
Agreement of Estimate Revisions
Over the past seven days, most analysts covering Cubist Pharma
have left their earnings estimates for the third quarter 2012
unchanged. The last seven days has seen only one analyst revising
the earnings estimate for the third quarter of 2012. The movement
has been in the upward direction. Similarly, the fiscal 2012
earnings estimate has been revised upwards by one analyst over the
last seven days.
We believe that most analysts have preferred to adopt a
wait-and-watch approach until Cubist Pharma unfurls its results on
October 18 before revising their estimates. We expect Cubist
Pharma's results in the third quarter of 2012 to be driven by
strong sales of Cubicin. We are also pleased by the company's
Optimer Pharmaceuticals Inc.
) to co-promote Dificid in the US for C. difficile acquired
Magnitude of Estimate Revisions
Given the lack of significant directional pressure, earnings
estimates for the third quarter and fiscal 2012 have gone up by a
penny and 2 cents to 45 cents and $1.86 per share, respectively,
over the last seven days.
Currently, we have a Neutral recommendation on Cubist Pharma.
The stock carries a Zacks #3 Rank (Hold rating) in the short
CUBIST PHARM (CBST): Free Stock Analysis Report
OPTIMER PHARMAC (OPTR): Free Stock Analysis
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