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OPKO Health (OPK) Q1 Earnings Match Estimates, Revenues Top

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OPKO Health, Inc. OPK reported first-quarter 2021 adjusted earnings per share (EPS) of 5 cents per share, which met the Zacks Consensus Estimate. Notably, the company had reported a loss of 9 cents in the prior-year quarter.

Revenue Details

First-quarter revenues of this Zacks Rank #3 (Hold) company were $545.2 million, which surpassed the Zacks Consensus Estimate by 8.4%. The top line also improved 157.8% on a year-over-year basis.

Segmental Revenues in Q1

Revenues from Services amounted to $507 million in the reported quarter, up 196.8% year over year driven by COVID-19 testing volume. However, decline in revenues in the company’s bases testing business, which represents the negative impact of the COVID-19 pandemic, partially offset the upside.

Revenues from Products rose 9% to $33.9 million owing to higher sales in OPKO Chile and FinTech. However, lower sales in RAYALDEE partially offset the upside.

OPKO Health, Inc. Price, Consensus and EPS Surprise

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

OPKO Health, Inc. price-consensus-eps-surprise-chart | OPKO Health, Inc. Quote

Revenues from Transfer of intellectual property totaled $4.3 million, down 55.2% year over year, due to a decline in the amortization of payments received from Pfizer associated with somatrogon.

Per management, total RAYALDEE prescriptions declined 32.8% year over year in the first quarter. During the quarter under review, the company witnessed a decline in sales of RAYALDEE due to the impact of the pandemic.

Margin Analysis

Gross profit in the reported quarter was $181.7 million, up 155.2% from the prior-year quarter. Gross margin was 33.3% of net revenues, down 40 basis points (bps) year over year.

Selling, general and administrative expenses totaled $112.3 million, up 47.6% year over year. Research and development expenses amounted to $19.3 million, down 11.5% year over year.

Operating income in the first quarter was $38.5 million, against the year-ago quarter’s loss of $40.7 million.

Financial Update

The company exited the first quarter with cash, cash equivalents and marketable securities of $89.5 million, compared with $72.2 million on a sequential basis.

Guidance

In the quarter under review, OPKO Health refrained from issuing any guidance.

Summing Up

OPKO Health exited the first quarter on a mixed note. Further, its utilization of the 4Kscore remains strong. Also, the company witnessed strength across its Services and Products segments in the quarter under review.

Regulatory approvals and presentations of clinical data from studies during the first quarter are highlights.

Furthermore, BioReference Laboratories COVID-19 testing volume witnessed a significant increase in the first quarter.

Meanwhile, contraction in gross margin remains a woe. Moreover, decline in sales of RAYALDEE is a concern. Further, OPKO Health continues to face cut-throat competition in the MedTech space.

Key Picks

Some better-ranked stocks, which are expected to report earnings soon, are DENTSPLY SIRONA Inc. XRAY, The Cooper Companies, Inc. COO and Owens & Minor, Inc. OMI, each carrying a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

DENTSPLY SIRONA is set to release results on May 6. The Zacks Consensus Estimate for DENTSPLY SIRONA’s first-quarter 2021 adjusted EPS is pegged at 55 cents, suggesting growth of 27.9% from the year-ago quarter. The consensus mark for first-quarter revenues stands at $929.3 million, indicating year-over-year increase of 6.3%.

The Zacks Consensus Estimate for Cooper Companies’ fiscal second-quarter 2021 revenues is pegged at $685.2 million, suggesting year-over-year improvement of 30.5%. The same for EPS stands at $3.04, indicating growth of 101.3% from the year-ago reported figure.

The Zacks Consensus Estimate for Owens & Minor’s first-quarter 2021 EPS is currently pegged at 97 cents, indicating significant growth from the year-ago reported figure. The same for revenues stands at $2.29 billion, indicating an improvement of 7.9% from the year-ago reported figure.

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