Quarterly Earnings Surpass Expectations
Legend Biotech has recently released its quarterly earnings results, showcasing a significant beat over analysts' expectations. The company reported an earnings per share (EPS) of ($0.05), outperforming the consensus estimate of ($0.54) by $0.49. This improvement comes despite the company facing a negative net margin of 135.92% and a negative return on equity of 27.91%.
Understanding Earnings Per Share (EPS)
Earnings per share (EPS) is a crucial metric in finance that indicates a company's profitability. It is calculated by dividing the company's net income by the number of outstanding shares. For instance, if a company has a net income of $1 million and 1 million shares, its EPS is $1.00.
Revenue Growth and Market Position
During the quarter, Legend Biotech reported revenue of $186.50 million, which far exceeded analyst estimates of $125.25 million. This marks an impressive year-over-year revenue growth of 154.4%. The company's stock opened at $55.90 on Friday, with a market cap of $10.19 billion. Despite the earnings beat, the stock traded down 1.8%, reflecting market volatility.
Financial Health Indicators
The company maintains a quick ratio of 5.57 and a current ratio of 5.66, suggesting it has robust liquidity to cover short-term obligations. A debt-to-equity ratio of 0.25 indicates that Legend Biotech utilizes a low level of debt in its capital structure.
Analyst Ratings and Future Outlook
A number of brokerages have recently issued favorable analyst ratings for Legend Biotech. Notable among them, Scotiabank increased its price target from $65.00 to $70.00. Similarly, HC Wainwright reaffirmed a buy rating with a target price of $73.00. On the other hand, TD Cowen slightly adjusted its target price down from $71.00 to $67.00, yet maintained a buy rating.
Company Profile
Legend Biotech Corporation is a clinical-stage biopharmaceutical company focusing on developing innovative cell therapies for cancer treatment. Their lead product candidate, LCAR-B38M, is designed for the treatment of multiple myeloma. Legend Biotech operates internationally, including markets in the United States and China.
