Neuralstem, Inc. :CUR-US: Earnings Analysis: Q1, 2016 By the Numbers

Neuralstem, Inc. reports financial results for the quarter ended March 31, 2016.

We analyze the earnings along side the following peers of Neuralstem, Inc. – Titan Pharmaceuticals, Inc., Cytokinetics, Incorporated, Acorda Therapeutics, Inc., Geron Corporation, Albany Molecular Research, Inc., Neurocrine Biosciences, Inc., Aceto Corporation, Charles River Laboratories International, Inc. and StemCells, Inc. (TTNP-US, CYTK-US, ACOR-US, GERN-US, AMRI-US, NBIX-US, ACET-US, CRL-US and STEM-US) that have also reported for this period.

Highlights

  • Summary numbers: Revenues of USD 0.00 million, Net Earnings of USD -6.61 million.
  • Year-on-year change in operating cash flow of 26.09% is about the same as the change in earnings, likely no significant movement in accruals or reserves.
  • Narrowing of operating margins contributed to decline in earnings.

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

2015-03-31 2015-06-30 2015-09-30 2015-12-31 2016-03-31
Relevant Numbers (Quarterly)
Revenues (mil) 0 0 0 0 0
Revenue Growth (%YOY) -30 -50 -50 -46.42 -14.3
Earnings (mil) -5.05 -5.45 -5.64 -4.77 -6.61
Earnings Growth (%YOY) 14.63 19.3 -26.54 13.41 -30.73
Net Margin (%) -173230.89 -217921.48 -225502.72 -190606.04 -264231.32
EPS -0.06 -0.06 -0.06 -0.05 -0.07
Return on Equity (%) -109.02 -128.56 -192.39 -274.85 -1101.45
Return on Assets (%) -66.66 -76.23 -94.92 -105.34 -209.32

Access our Ratings and Scores for Neuralstem, Inc.

Market Share Versus Profits

Revenues History
Earnings History

CUR-US‘s change in revenue this period compared to the same period last year of -14.30% 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 CUR-US is holding onto its market share. Also, for comparison purposes, revenues changed by 0% and earnings by -38.63% compared to the immediate last period.

Revenues Growth Versus Earnings Growth

Cash Versus Earnings – Sustainable Performance?

CUR-US‘s change in operating cash flow of 26.09% 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

Margins

The company’s decline in earnings has been influenced by the following factors: (1) Decline in operating margins (EBIT margins) from -158,141.24% to -249,344.48% and (2) one-time items that contributed to a decrease in pretax margins from -173,230.89% to -264,231.32%

EBIT Margin Versus PreTax Margin
EBIT Margin History
PreTax Margin History

Access our Ratings and Scores for Neuralstem, Inc.

Company Profile

Neuralstem, Inc. is a biopharmaceutical company, which is focused on the research, development and commercialization of central nervous system therapies based on human neuronal stem cells and small molecule compounds. Its patented technology enables the commercial-scale production of multiple types of central nervous system stem cells, which are under development for the potential treatment of central nervous system diseases and conditions. The company was founded by I. Richard Garr, Karl Y. Johe and Merrill Solomon in 1996 and is headquartered in Germantown, MD.

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