MannKind Corporation (NASDAQ: MNKD)
As expected, MannKind released it’s earnings report. Although the company hit the nail on the head with regard to analyst expectations, and showed other positive data, the stock seems to be falling today. So below, we’ll take a look at the earnings report, discuss the market’s reaction, and talk about what we can expect to see moving forward.
MNKD Earnings Report Details
As mentioned above, MannKind hit the nail on the head with regard to earnings, and produced other positive data. Here’s what we saw…
- Earnings Per Share – For the quarter, MannKind reported EPS at a loss of $0.08; exactly on target with analyst expectations.
- Operating Expenses – Operating expenses came in at $21.7 million; a year over year decline of 47.5%. Research and development costs came in at $9.4 million for the quarter; a year over year decline of 64.2%.
- Cash & Cash Equivalents – This figure remains unchanged at $120.8 million.
How MannKind Investors Reacted
Unfortunately, the market is not having a positive reaction to the earnings report. After the earnings release, MNKD fell hard. However morning trading has started to bring the value of the stock back up. Currently (9:43), MNKD is trading at $3.82 per share after a loss of 4.85% so far today.
What We Can Expect To See Moving Forward
The reality is that the earnings report was good. Not only did the company hit the nail on the head with regard to earnings per share, they’ve drastically reduced their operational expenses. With that said, I see no reason for declines and expect to see a short term recovery. In the long run, I’m also expecting to see great things. While the bears are likely to hang onto the fact that Afrezza has had a bit of a slow launch, there are a couple of things I think they’re failing to realize…
- Afrezza – First of all, most negative notes hinge on Afrezza sales. However, Afrezza is not only new, it hasn’t even been marketed yet. Really! Have you seen a commercial, flipped in your favorite magazine to an ad, or heard a peep about the inhaled insulin on the radio? Not yet! So, the $1 million + in sales they’ve done so far is with absolutely no brand awareness; and prescription requests for Afrezza are on the rise. That seems pretty promising to me.
- Pipeline – While most negative Nancies tend to hinge their opinion on Afrezza, I think the value of MNKD goes far beyond Afrezza. First, the technology used to deliver insulin through the inhaled Afrezza powder can also be used to deliver other currently injection only medications. Also, MNKD has a relatively impressive pipeline that goes beyond Afrezza; with several prospects that could be big hits in the making!
All in all, I think that there’s tons of value in the long run, and that today’s declines are presenting another great buying opportunity!
What Do You Think?
Where do you think MNKD is headed and why? Let us know in the comments below!