Oasmia Pharmaceutical AB :OASM-US: Earnings Analysis: Q3, 2017 By the Numbers : March 22, 2017

Oasmia Pharmaceutical AB reports financial results for the quarter ended January 31, 2017.

We analyze the earnings along side the following peers of Oasmia Pharmaceutical AB – Ohr Pharmaceutical, Inc., OncoMed Pharmaceuticals, Inc. and OncoGenex Pharmaceuticals, Inc. (OHRP-US, OMED-US and OGXI-US) that have also reported for this period.

Highlights

  • Summary numbers: Revenues of USD 0.00 million, Net Earnings of USD -4.43 million.
  • Gross margins narrowed from -385.75% to -96,511.11% compared to the same period last year, operating (EBITDA) margins now -93,683.33% from -366.39%.
  • Year-on-year change in operating cash flow of 7.96% 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:

2017-01-31 2016-10-31 2016-07-31 2016-04-30 2016-01-31
Relevant Numbers (Quarterly)
Revenues (mil) 0 0.01 0 0.01 0.7
Revenue Growth (%YOY) -99.43 4.44 -83.53 67.97 1045.32
Earnings (mil) -4.43 -4.74 -4.37 -4.01 -2.96
Earnings Growth (%YOY) -49.74 7.6 7.08 -14.11 16.46
Net Margin (%) -110825 -73826.79 -102558.33 -55901.69 -419.36
EPS -0.11 -0.13 -0.12 -0.11 -0.08
Return on Equity (%) -51.94 -56.28 -46.86 -39.78 -28.68
Return on Assets (%) -29.95 -31.86 -27.99 -25.8 -19.1

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Market Share Versus Profits

Revenues History
Earnings History

OASM-US‘s change in revenue this period compared to the same period last year of -99.43% 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 OASM-US is holding onto its market share. Also, for comparison purposes, revenues changed by -37.84% and earnings by 6.69% compared to the immediate last period.

Revenues Growth Versus Earnings Growth

Quadrant label definitions. Hover to know more

Leader, Earnings Focus, Laggard, Revenues Focus

Earnings Growth Analysis

The company’s year-on-year decline in earnings was influenced by a weakening in gross margins from -385.75% to -96,511.11%, as well as issues with cost controls. As a result, operating margins (EBITDA margins) went from -366.39% to -93,683.33% in this time frame. For comparison, gross margins were -64,394.64% and EBITDA margins were -62,369.64% in the previous period.

Gross Margin Versus EBITDA Margin

Quadrant label definitions. Hover to know more

Differentiated; Low Cost, Commodity; Low Cost, Commodity; High Cost, Differentiated; High Cost

Cash Versus Earnings – Sustainable Performance?

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

OASM-US‘s change in operating cash flow of 7.96% 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 decline in earnings has been influenced by the following factors: (1) Decline in operating margins (EBIT margins) from -385.75% to -96,836.11% and (2) one-time items that contributed to a decrease in pretax margins from -419.36% to -110825%

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

Oasmia Pharmaceutical AB is engaged in reaserch and development of drugs. It formulates pharmaceutical products for ovarian and breast cancer for humans and cancer for animals. Its portfolio includes Paclical, Doxophos, Docecal, and OAS-19 for human health; and Paccal Vet and Doxophos Vet for animal health. The company was founded by Julian Aleksov and Bo Cederstrand on April 15, 1988 and is headquartered in Uppsala, Sweden.

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