Synergy Pharmaceuticals Inc (NASDAQ: SGYP) is having an overwhelmingly strong start in the pre-market trading hours this morning, and for good reason. The company reported its earnings for the third quarter, beating expectations and exciting investors. Today, we’ll talk about what we saw from earnings, how the stock reacted to the news, and what we’ll be watching for with regard to SGYP ahead.
SGYP Reports Earnings
As mentioned above, Synergy Pharmaceuticals is having an incredibly strong start to the trading session this morning after the company reported its earnings for the third quarter. Here’s what we saw from the report:
- Earnings Per Share – In terms of earnings per share, SGYP did incredibly well. During the quarter, analysts expected that the company would generate a loss in the amount of $0.27 per share. However, the company actually reported a loss of $0.22 per share, beating expectations by $0.05 per share.
- Revenue – While earnings proved to be overwhelmingly positive, revenue proved to be a miss. During the third quarter, SGYP generated revenue in the amount of $5 million. However, analysts were expecting to see revenue come in at $5.8 million.
In a statement, Gary S. Jacob, Chairman and CEO at Synergy Pharmaceuticals, had the following to offer:
“We remain very excited by the continued positive momentum for TRULANCE in the CIC market… The investments we’ve made and the continued execution of our commercial strategy have allowed us to drive strong early customer demand, gaining TRULANCE coverage on major commercial, Medicare Part D and Medicaid plans within the first six months of launch. Our product in market access demonstrates that payers recognize the potential value TRULANCE can offer CIC patients, which we will leverage as we move towards the anticipated expansion of the label with the IBS-C indication this coming January. With growing customer demand, improving market access and the expected expansion into IBS-C, Synergy has a significant opportunity to drive further growth and long-term value for patients, healthcare providers and our shareholders.”
How The Stock Reacted To The News
As investors and traders alike, we’ve come to expect that when positive earnings are reported, we can expect to see gains in the value of the stock. That’s exactly what we’re seeing from SGYP at the moment. Of course, our partners at Trade Ideas were the first to alert us to the gains. At the moment (8:54), SGYP is trading at $3.12 per share after a gain of $0.15 per share or 5.05% thus far today.
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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 SGYP. In particular, we’re interested in following the story surrounding label expansion as more news should be coming down the line in just a couple of months. We’re also interested in following the ongoing growth in sales of TRULANCE. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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