MannKind Corporation (NASDAQ: MNKD)
MannKind has seen some positivity in the market over the past couple of trading sessions as bears seem to be loosening their grip on the stock. Perhaps, much of the positive movement has to do with the earnings report that’s coming soon. On Monday, after the closing bell, MNKD will be releasing its quarterly report for the fourth fiscal quarter of 2015. While we will see data like revenue and earnings per share, this data isn’t likely to be very important to investors. After all, we know that revenue and earnings aren’t where they should be. What’s going to make the difference on Monday is guidance – specifically guidance with regard to the inhaled insulin, Afrezza. Today, we’ll talk about why the numbers aren’t going to be a big deal, what I expect to see from guidance, and how I believe that investors are going to react to the Q4 report from MNKD.
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Why The Normal Numbers Aren’t Going To Be A Big Deal
When it comes to earnings reports, two of the most watched factors tend to be earnings per share and top-line revenue. However, throughout the past year, we’ve seen bad news in these areas as Sanofi decided to drag its feet with the commercialization of MannKind’s Afrezza. In January, the relationship between MNKD and Sanofi was ended, leaving MannKind to work on its own commercialization. From then to now, there are no expectations of major increases in sales as the plan is just starting to come together. So, investors know that revenue and earnings are going to be the furthest thing from positive. Nonetheless, the earnings report from MNKD can still lead to massive growth in the stock.
Afrezza Will Be The Star Of The MNKD Earnings Report
Rather than watching for strong earnings, MannKind investors will be watching for news with regard to Afrezza. You see, since the cancellation of the agreement between MNKD and SNY, we’ve heard a bit about how MNKD plans on tackling commercialization. First off, they have said that they are looking for new commercialization partners to help push sales over the edge. However, that’s not the only way they plan on expanding Afrezza sales. In fact, MannKind announced early in the year that it has teamed up with Specialized Diabetes Care Centers to treat diabetes in real time with Afrezza. The key to the MNKD earnings report is going to be where we are in this process. Has the company found any new commercialization partners? Have the Specialized Diabetes Care Centers started to promote Afrezza? And most importantly, what is the outlook with regard to prescription numbers over the next quarter and for the full year 2016? If this guidance comes in positive, MNKD has nothing to worry about with regard to reporting negative revenue and earnings numbers!
What I’m Expecting To See On Monday
If you follow my writing here or elsewhere, you know that I’ve been following this story closely for quite some time. With that said, I’m expecting to see an overwhelmingly positive reaction from Monday’s earnings report. Since MannKind and Sanofi cut ties, I’ve been incredibly impressed with Matthew Pfeffer’s movements and announcements with regard to Afrezza, Technosphere, and MNKD as a whole. At this point, I believe that the company has a clear plan for what it’s going to do next, and that this will boost Afrezza sales, ultimately exciting investors and leading to growth in the stock. So, make sure you’re watching Monday after the bell, this earnings report is going to be a great one!
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What Do You Think?
What do you think we’ll see from the MNKD earnings report and why? Let us know your opinion in the comments below!
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