Athersys (ATHX) Stock | Why Poor Earnings Aren’t Concerning

Athersys ATHX stock newsAthersys, Inc. (NASDAQ: ATHX)

As expected Athersys recently reported their earnings for the first quarter. Unfortunately, the report wasn’t what we expected to see. As a result, we saw a steep decline in the value of the stock earlier this morning, followed by a correction that brought the value back up. So today, we’ll talk about the company’s earnings report, the reaction we saw in the market, and what we can expect to see from ATHX moving forward.

Athersys Misses Earnings Expectations By $0.09

As mentioned above, the ATHX earnings report was unfortunately not what we expected to see. Here’s a brief overview…

  • Earnings Per Share – Earnings per share came in at a loss of $0.16; a $0.09 wider loss than the analyst estimates for the quarter at $0.07.
  • Top Line Revenue – The company generated revenue in the amount of $0.73 million. Unfortunately, this proved to be a miss as well. Analysts expected to see revenue come in at $2.01 million. However, year over year, this represents a 2.8% increase.

As you can see from the data above, there wasn’t much good news to report about ATHX earnings.

How ATHX Reacted In The Market

In most cases, when we see missed earnings, the reports are followed by declines in the stock market. While Athersys did decline in the market in early trading this morning, it quickly recovered from the declines we saw; and now, seems to be straddling yesterday’s close. Currently (11:39), ATHX is trading at $1.39 per share after zero gain in either direction.

What We Can Expect To See Moving Forward

While I don’t normally say this in the light of missed earnings projections, I have to say that I’m expecting to see great things out of ATHX. The reality is that the company is in the clinical stage; therefore, earnings aren’t as important as progress. While earnings may have missed expectations, we’ve seen great progress from the company. The company currently has 5 clinical stage programs involving it’s proprietary adult-derived “off-the-shelf” stem cell product called MultiStem. The treatment is expected to help with inflammatory bowel disease, ischemic stroke, damage caused by myocardial infraction and the prevention of graft-virus-host disease. Knowing all of that, there’s no doubt that progress is being made and the company is moving in the right direction.

What Do You Think?

What are you expecting to see from ATHX moving forward and why? Let us know in the comments below!

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