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Why Is Ophthotech (OPHT) Up 5.8% Since Last Earnings Report?

A month has gone by since the last earnings report for Ophthotech (OPHT). Shares have added about 5.8% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Ophthotech due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

Ophthotech Q2 Loss Narrows, Zimura Progress On Track

Ophthotech incurred a loss of 37 cents per share for the second quarter of 2018, narrower than the Zacks Consensus Estimate of a loss of 40 cents and loss of 62 cents in the year-ago quarter.

With no approved products in its portfolio, Ophthotech derives revenues from milestone and other payments under collaborations. However, there were no such revenues in the quarter. The company had reported $1.7 million in revenues in the year-ago period.

Quarter in Detail

Research and development expenses in the second quarter decreased 45.9% to $8.5 million, mainly due to termination of the Fovista development programs in wet AMD and lower personnel costs.

General and administrative expenses decreased 26.7% from the year-ago period to $6.3 million due to lower personnel, operational and infrastructure cost.

Cash Balance

Ophthotech's cash balance was $146 million as of Jun 30, 2018.

The company continues to expect its cash balance at 2018 end to be in the range of $112 million to $117 million, after deducting costs related to the development of Zimura and initiation of a gene therapy program in the year.

How Have Estimates Been Moving Since Then?

Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.

VGM Scores

At this time, Ophthotech has an average Growth Score of C, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of F on the value side, putting it in the bottom 20% quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Our style scores indicate that the stock is more suitable for momentum investors than growth investors.

Outlook

Ophthotech has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

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


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

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