Idera Pharmaceuticals Inc (NASDAQ: IDRA)
As expected, Idera Pharmaceuticals Inc reported its earnings this morning before the opening bell. While the earnings slightly missed expectations, there seems to be a positive overall investor reaction at the moment. Below, we’ll take a look at the IDRA earnings report, discuss the movement we’ve seen in the market as a result, and talk about what we can expect to see from the stock moving forward. So, let’s get right to it!
IDRA Misses Earnings Expectations
- Earnings Per Share – The company generated a loss per share in the amount of $0.12. Analysts had expected to see losses at $0.11 per share; a penny better than what was reported.
- Revenue – While the company didn’t disclose an exact revenue amount, they did mention that revenue recognized was nominal.
- R&D Expenses – The company spent $8.7 million on research and development in the quarter.
- Cash Equivalents & Investments Growth – In the quarter, cash equivalents and investments grew to $116.9 million from $48.6 million in the previous quarter.
How Investors Reacted To The News
In my opinion the earnings report wasn’t positive or negative news; in this particular case, it was just news. The reality is that as a clinical-stage biopharmaceutical company, earnings aren’t expected from Idera at the moment. Right now, investors want the company to focus on innovation and development; which will lead to profits in the long run. That’s exactly what the company is doing. So, naturally, we had a positive reaction in the stock market. Currently (11:37), IDRA is trading at $2.98 per share after a gain of 7.58%.
What We Can Expect To See Moving Forward
First off, IDRA is a small-cap, clinical-stage biopharmaceutical company. The nature of this beast is heavy volatility. So, expect to see quite a bit of volatility in price movement from this one. Nonetheless, the company is spending more money on research and discovery, they’re focusing on expanding their pipeline of treatment candidates, and they seem to be doing well so far. So, I’m expecting to see more positive movement from Idera Pharmaceuticals to come.
What Do You Think?
Where do you think IDRA is headed and why? Let us know in the comments below!