MannKind Corporation (MNKD) Stock: Are Today’s Declines An Opportunity?


MannKind Corporation (NASDAQ: MNKD) is having an overwhelmingly rough start to the trading session this morning, and for good reason. The company reported its earnings for the most recent quarter after hours yesterday, missing expectations in a big way. However, are the declines presenting an opportunity? Today, we’ll talk about what we saw from the earnings report, how the stock reacted to the news, the potential opportunity this creates, and what we’ll be watching for with regard to MNKD ahead.

MNKD Reports Earnings

As mentioned above, MannKind Corporation is having an incredibly rough start to the trading session this morning after reporting its earnings for the third quarter. Unfortunately, the report largely missed expectations. Here’s what we saw:

  • Earnings – In terms of earnings, MNKD missed the mark in a big way. During the quarter, analysts expected that the company would generate a loss in the amount of $0.20 per share. However, the company actually reported a loss in the amount of $0.31 per share, $0.11 per share wider than expected.
  • Revenue – Revenue also proved to be a source of pain for MNKD investors. During the quarter, analysts expected that the company would generate revenue in the amount of $3.88 million. However, the company only reported revenue in the amount of $2 million.

How The Stock Reacted To The News

As investors, we’ve come to expect that any time earnings proves to be a miss, we will see declines in the value of the stock. Well, that’s exactly what we’re seeing from MannKind Corporation today. Unfortunately, with the missed earnings on the miss freshly on the minds of investors, the stock is taking a dive. Of course, our partners at Trade Ideas were the first to alert us to the declines. Currently (9:35), MNKD is trading at $2.86 per share after a loss of $0.39 per share or 12.11% thus far today.

Is This An Opportunity?

At first glance, missed earnings leading to massive declines on any stock can look pretty bad. However, in this particular case, MNKD may be presenting an opportunity. You see, the data that was released today is data that’s based on an outdated label. Many believe that Afrezza’s previous label was hindering sales. However, recently, MannKind Corporation announced approval from the FDA surrounding a label change that provides more information to prescribers and patients alike. As a result, many believe that this label change will lead to explosive sales of Afrezza. Of course, if this were to happen, it could be a game changer for the company and its investors. Considering the label change, declines that we’re seeing on the stock today may be an opportunity to get in on future gains at an incredible discount.

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will continue to keep a close eye on MNKD. In particular, we’ll be following the story surrounding the Afrezza label change and we are excited to see the sales that result from the move. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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