Concert Pharmaceuticals, Inc. :CNCE-US: Earnings Analysis: Q3, 2017 By the Numbers : November 30, 2017

Concert Pharmaceuticals, Inc. reports financial results for the quarter ended September 30, 2017.

We analyze the earnings along side the following peers of Concert Pharmaceuticals, Inc. – Celgene Corporation, AbbVie, Inc., Ionis Pharmaceuticals, Inc., Ardelyx, Inc., Jazz Pharmaceuticals Plc and Trevena, Inc. (CELG-US, ABBV-US, IONS-US, ARDX-US, JAZZ-US and TRVN-US) that have also reported for this period.

Highlights

  • Summary numbers: Revenues of USD 143.84 million, Net Earnings of USD 127.32 million.
  • Year-on-year change in operating cash flow of 1,404.23% is about the same as the change in earnings, likely no significant movement in accruals or reserves.
  • Earnings growth from operating margin improvements as well as one-time items.

The table below shows the preliminary results and recent trends for key metrics such as revenues and net income growth:

2017-09-30 2017-06-30 2017-03-31 2016-12-31 2016-09-30
Relevant Numbers (Quarterly)
Revenues (mil) 143.84 0.02 0.02 0.02 0.03
Revenue Growth (%YOY) 553146.15 -78.87 -64.29 -99.8 -98.48
Earnings (mil) 127.32 -13.03 -13.33 -12.04 -11.36
Earnings Growth (%YOY) 1221.2 3.08 3.94 -1860.67 -32.76
Net Margin (%) 88.52 -86846.67 -66665 -57347.62 -43676.92
EPS 5.44 -0.58 -0.6 -0.54 -0.51
Return on Equity (%) 97.85 -18.69 -16.6 -13.25 -11.23
Return on Assets (%) 317.47 -52.73 -56.31 -45.28 -38.66

Access our Ratings and Scores for Concert Pharmaceuticals, Inc.

Market Share Versus Profits

Revenues History
Earnings History

CNCE-US’s change in revenue this period compared to the same period last year of 553,146.15% is almost the same as its change in earnings, and is about average among the announced results thus far in its peer group, suggesting that CNCE-US is holding onto its market share. Also, for comparison purposes, revenues changed by 958860% and earnings by 1,077.39% compared to the immediate last period.

Revenues Growth Versus Earnings Growth

Quadrant label definitions. Hover to know more

Leader, Earnings Focus, Laggard, Revenues Focus

Cash Versus Earnings – Sustainable Performance?

It is important to examine a company�s cash versus earnings numbers to gauge whether its performance is sustainable.

CNCE-US’s change in operating cash flow of 1,404.23% compared to the same period last year is about the same as its change in earnings this period. Additionally, this change in operating cash flow is about average among its peer group. This suggests that the company did not use accruals or reserves to manage earnings this period, and that, all else being equal, the earnings number is sustainable.

Operating Cash Flow Growth Versus Earnings Growth

Quadrant label definitions. Hover to know more

Cash Flow based Earnings, Likely Non-cash Earnings, Low Cash Flow Base, Likely Undeclared Earnings

Margins

The company’s earnings growth has also been influenced by the following factors: (1) Improvements in operating (EBIT) margins from -44,107.69% to 91.65% and (2) one-time items. The company’s pretax margins are now 90.54% compared to -43,676.92% for the same period last year.

EBIT Margin Versus PreTax Margin

Quadrant label definitions. Hover to know more

Operation driven Earnings, One-time Favorables, Low Earnings Base, One-time Unfavorables
EBIT Margin History
PreTax Margin History

Access our Ratings and Scores for Concert Pharmaceuticals, Inc.

Company Profile

Concert Pharmaceuticals, Inc. is a clinical stage biopharmaceutical company, which discovers and develops novel small molecule drugs for renal disease, CNS disorders, inflammation and hematologic disorders. It also creates novel medicines that address commercially important needs by applying its deuterated chemical entity platform to compounds with well-characterized pharmacological activity. The company was founded by Richard H. Aldrich, Roger D. Tung and Christoph H. Westphal on April 12, 2006 and is headquartered in Lexington, MA.

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