Array Biopharma Inc (NASDAQ: ARRY)
Earnings season is in full swing; and it’s been a bit of a toss up with regard to positivity. Some have been good, some have been bad. However, Array Biopharma is on the good side, and the company’s stock is climbing today as a result of the news. Below, we’ll chat about what we saw from the earnings report, how ARRY is reacting in the market, and what we can expect from the stock moving forward.
Array Biopharma Beats Earnings Expectations
As mentioned above, ARRY produced a great earnings report. As a matter of fact, the company beat both top-line revenue expectations and earnings per share expectations. Here’s the numbers…
- Top-Line Revenue – Top-line revenue came in at $6.6 million. While it did fall short of the $7.8 million we saw a year ago, the figure beats analyst expectations of $6 million for the quarter.
- Earnings Per Share – Analysts were expecting to see a loss of 1 cent per share. However, ARRY produced an earnings surprise; generating $0.37 EPS in the quarter.
How ARRY Reacted In The Market
As we’ve come to expect anytime we see positive news in the biotech space, ARRY stock is up and in a big way. Currently (1:54), the stock is trading at $7.11 per share after a gain of 12.47% so far today.
What I’m Expecting To See Moving Forward
Moving forward, I’m expecting to see more growth from ARRY. The earnings report has put new hope into the stock for investors; and it’s well deserved. To take an expected loss and turn it into a gain of $0.37 per share is no easy feat. Not to mention, the company is moving forward with further studies of important drug candidates; two of which come from their most recent acquisition. Along with the report, Ron Squarer, ARRY CEO had the following to say…
“With the close of the Novartis-GSK transaction, Array now owns both binimetinib and encorafenib, two innovated oncology products in Phase 3, with plans for regulatory submissions for each product in 2016. These transformative transactions have accelerated our path to commercialize and provide us with the opportunity to develop two potentially broadly active products in a number of indications.”
All in all, I’m expecting to see long term gains from ARRY. While we can expect short term volatility as always in small-cap biotech stocks, in the long run, there are definitely plenty of reasons for this one to grow!
What Do You Think?
Where do you think ARRY is headed and why? Let us know in the comments below!