Intercept Pharmaceuticals, Inc. :ICPT-US: Earnings Analysis: Q1, 2017 By the Numbers : May 12, 2017

Intercept Pharmaceuticals, Inc. reports financial results for the quarter ended March 31, 2017.

We analyze the earnings along side the following peers of Intercept Pharmaceuticals, Inc. – Bristol-Myers Squibb Company, Eli Lilly and Company, Enzon Pharmaceuticals, Inc., SciClone Pharmaceuticals, Inc., MediciNova, Inc., Gilead Sciences, Inc. and Conatus Pharmaceuticals Inc. (BMY-US, LLY-US, ENZN-US, SCLN-US, MNOV-US, GILD-US and CNAT-US) that have also reported for this period.


  • Summary numbers: Revenues of USD 21.05 million, Net Earnings of USD -89.93 million.
  • Year-on-year change in operating cash flow of -10.94% 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:

2017-03-31 2016-12-31 2016-09-30 2016-06-30 2016-03-31
Relevant Numbers (Quarterly)
Revenues (mil) 21.05 13.81 5.18 5.52 0.45
Revenue Growth (%YOY) 4629.89 2989.26 1063.37 1140.45 -69.21
Earnings (mil) -89.93 -120.04 -88.82 -77.3 -126.67
Earnings Growth (%YOY) 29.01 -36.02 -74.5 -61.4 -221.62
Net Margin (%) -427.26 -869.3 -1715.57 -1400.34 -28466.07
EPS -3.61 -4.84 -3.59 -3.14 -5.17
Return on Equity (%) -129.59 -131.58 -85.44 -68.33 -92.93
Return on Assets (%) -51.12 -61.9 -53.17 -55.33 -81.13

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Market Share Versus Profits

Revenues History
Earnings History

ICPT-US‘s change in revenue this period compared to the same period last year of 4,629.89% 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 ICPT-US is holding onto its market share. Also, for comparison purposes, revenues changed by 52.42% and earnings by 25.08% 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.

ICPT-US‘s change in operating cash flow of -10.94% 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


The company’s earnings growth has also been influenced by the following factors: (1) Improvements in operating (EBIT) margins from -17,505.62% to -398.91% and (2) one-time items. The company’s pretax margins are now -427.26% compared to -28,466.07% 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

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Company Profile

Intercept Pharmaceuticals is a biopharmaceutical company, which engages in the research, development, and commercialization of novel therapeutics in treating chronic liver diseases. Its product pipeline is OCALIVA which is used for the treatment of primary biliary cholangitis, nonalcoholic steatohepatitis, primary sclerosing cholangitis, and biliary atresia. The company was founded by Mark E. Pruzanski and Roberto Pellicciari on September 4, 2002 and is headquartered in New York, NY.

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