MannKind (MNKD) Reports First Quarter Loss, Top Revenue Estimates

MannKind (MNKD) came out with a quarterly loss of $0.10 per share, in line with the Zacks Consensus Estimate. For comparison, a year ago the loss was $0.05 per share. These numbers have been adjusted for one-off items.

A quarter ago, it was expected that this biopharmaceutical company would post a loss of $0.06 per share when it actually produced a loss of $0.11, delivering a surprise of -83.33%.

Over the last four quarters, the company has surpassed consensus EPS estimates only once.

MannKind, which belongs to the Zacks Medical – Biomedical and Genetics industry, posted revenues of $11.99 million for the quarter ended March 2022, surpassing the Zacks Consensus Estimate by 14.91%. For comparison, revenues from the previous year amounted to $17.44 million. The company has topped consensus revenue estimates three times over the last four quarters.

The sustainability of the immediate share price movement based on the recently-released numbers and future earnings expectations will mostly depend on management’s commentary on the earnings call.

MannKind shares have lost about 26.1% year-to-date compared with the S&P 500 Index’s decline of -9.8%.

What’s next for MannKind?

While MannKind has underperformed the market this year, the question that comes to investors’ minds is: what’s next for the stock?

There are no simple answers to this key question, but one reliable measure that can help investors address this issue is the company’s earnings prospects. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of the earnings release, the estimate revision trend for MannKind is unfavorable. While the magnitude and direction of estimate revisions may change following the company’s just-released earnings report, the current status translates into the stock’s Zacks Rank #4 (Sell). Therefore, it can be expected that the company’s shares will underperform the market in the near future. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the next quarters and the current fiscal year change in the coming days. The current consensus EPS estimate is -$0.09 on revenue of $15.64M for the coming quarter and -$0.35 on revenue of $73.18M for the current fiscal year.

Investors should be aware that the outlook for the industry may also have a significant impact on share prices. In terms of the Zacks Industry Rank, the Medical Biomedical and Genetics industry is currently in the bottom 41% of the 250+ Zacks industries. Our research shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One more company in the same industry, Talis Biomedical (TLIS), is yet to report results for the quarter ended March 2022. The results are expected to be released on May 10.

The infectious disease diagnostics company is expected to report quarterly loss of $1.14 per share in its upcoming report, representing a year-over-year change of +75.3%. The consensus EPS estimate for the quarter has not changed over the last 30 days.

Talis Biomedical’s revenue is expected to be $0.5 million, down 92.9% from the year-ago quarter.

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