The stock price received 2 huge boosts in April: one on the 11th when it was reported that the company had seen positive results from a late stage study covering a multiple sclerosis drug, and the other was on the 21st when they released their fiscal 1st quarter results. I don't quite understand the market reaction to the earnings release because on a non-recurring basis they actually missed the EPS estimate by 20 cents.
In the first quarter, net income attributable to the company increased to $294.33 million or $1.20 per share from $217.44 million or $0.80 per share in the previous year.
On a non-GAAP basis, earnings per share were $1.43, up from $1.08 per share in the preceding year. On average, 23 analysts polled by Thomson Reuters expected earnings per share of $1.41 for the quarter. Analysts' estimates typically exclude one-time items.
This is a table from the last earnings announcement that provides detail on the difference between the GAAP and non-GAAP numbers (in millions):
The bulk of the difference is from the line item "Amortization of acquired intangible assets". I don't have an accounting degree which might be why I'm struggling to understand how the amortization of a finite asset could represent an ongoing income stream. The key going forward will be to keep an eye on their revenues.
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