Ariad Pharmaceuticals (ARIA) Stock Skyrockets: What’s Next?

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Ariad Pharmaceuticals, Inc. (NASDAQ: ARIA)

Ariad Pharmaceuticals is having an incredibly strong day in the market today – and for good reason. The company reported its earnings for the most recent quarter, blowing away expectations. Today, we’ll talk about what we saw from the earnings report, how investors reacted to the news, and what we can expect to see from AIRA stock moving forward.

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ARIA Reports Solid Earnings

As mentioned above, Ariad Pharmaceuticals is having an incredibly strong day in the market today after reporting solid earnings for the second quarter. Here’s what we saw from the report:

  • Earnings Per Share – In terms of earnings per share, ARIA did overwhelmingly well. During the second quarter, analysts expected that the company would generate a loss of $0.11 per share. However, the company actually reported earnings in the amount of $0.59 per share, blowing analyst expectations out of the water.
  • Revenue – When it comes to revenue, ARIA definitely did not disappoint. During the quarter, analysts expected that the company would generate revenue in the amount of $60.6 million. However, the company actually reported second quarter revenue in the amount of $69.1 million. Once again, the figure blew away analyst expectations.

Along with the release of overwhelmingly positive earnings, we heard a promising statement from Paris Panayiotopoulos, the CEO and President at Ariad Pharmaceuticals. Here’s what he had to say:

We also strengthened our financial position through our agreement with Incyte and the strong sales performance of Iclusig. Our teams are focused on Iclusig growth, preparations for the potential launch of brigatinib in the U.S. and driving forward our promising pipeline.”

How The Market Reacted To The News

As investors, one of the first lessons that we learn is that the news moves the market. Any time positive news is released with regard to a publicly-traded company, we can expect to see gains in the value of the stock. In this case, the news released with regard to ARIA was overwhelmingly positive. Not only did the company beat expectations in the second quarter, but we’re seeing strong product growth and a clear plan for success. As a result, the stock is climbing in the market. Currently (12:14), the stock is trading at $9.31 per share after a gain of $0.89 per share (10.57%) thus far today.

What We Can Expect To See Moving Forward

Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from ARIA stock. At the end of the day, the company’s earnings report told us quite a bit. First and foremost, Iclusig is doing incredibly well. During the quarter, the company brought in $65.3 million in sales on the drug. That’s more than double the revenue from the treatment in the same quarter one year ago and shows that sales are just under $100 million for the first half of 2016. So, growth in that area is overwhelmingly promising. On top of that, I’m incredibly excited with regard to the company’s pipeline and plans for the future. All in all, Ariad Pharmaceuticals stock looks like it’s going to climb from here.

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What Do You Think?

Where do you think ARIA is headed moving forward and why? Join the discussion at TalkTRENDZ!

[Image Courtesy of Pixabay]

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