MannKind (MNKD) Stock: Earnings Are A Bust… What’s Next?


MannKind Corporation (NASDAQ: MNKD)

MannKind is having a rough day in the market today, and for good reason. The company reported earnings after the closing bell yesterday as expected. Unfortunately, the report missed all expectations, putting fear in the minds of investors and leading to big declines on the stock. 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 MNKD moving forward. So, let’s get right to it…

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MNKD Misses Earnings Expectations

As mentioned above, MannKind reported its earnings for the fourth quarter following the closing bell yesterday. Unfortunately, the report was overwhelmingly negative. The company reported absolute zero in terms of revenue, while posting a wider loss than expected. In the quarter, analysts expected that MNKD would generate a loss of $0.05 per share. However, the company actually reported a loss of $0.66 per share. Not only did this widely miss analyst expectations, it shows a massive decline year over year. In the same quarter of 2014, the company reported a loss of only $0.09 per share. In a statement, Matthew Pfeffer, CEO of MNKD had the following to offer:

Our financial results for 2015 were not what we expected going into the year, but we are looking forward to the next twelve months with optimism and great excitement… Afrezza will soon be back under our control and we are all energized about the opportunity to launch a lean, focused commercial effort that highlights the differentiating qualities of our lead product.”

How The Market Reacted To The News

As investors, we know that the news moves the market. Any time we see positive news with regard to a publicly-traded company, we can expect to see gains in the value of the stock associated with that company. Adversely, when there’s negative news, we can expect to see declines. So naturally, we’re seeing declines on the value of MNKD today. The bottom line is that the overwhelmingly poor earnings report is creating a point of concern for investors, and concerned investors cause stocks to drop. Currently (11:22), MNKD is trading at $1.23 per share after a loss of $0.16 per share or 11.87% thus far today.

What We Can Expect To See Moving Forward

Moving forward, I have a relatively mixed opinion of what we can expect to see from MNKD. In the short run, chances are that the stock is going to continue on the downward path as investors continue to show their disappointment with regard to earnings. However, in the long run, I still maintain a relatively bullish opinion. My opinion on MannKind is wholly centered around the company’s lead product, Afrezza. When I first heard of Afrezza, even in trial stages, I was incredibly interested in what I was hearing. I have diabetic family members, and I can’t think of one that likes injecting themselves with insulin. Not to mention, there are many benefits to an inhaled insulin like offering it to those with a fear of needles, children, and those who work in areas without access to a public restroom. The reality is that MNKD should have no problem commercializing this treatment. While Sanofi did drag their feet and delay commercialization, they didn’t kill the chances for MNKD to be successful with this revolutionary treatment.

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What Do You Think?

Where do you think MNKD is headed and why? Let us know your opinion in the comments below!

[Image Courtesy of Pixabay]


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