HZNP

HZNP shows rapid rev growth {+200%} w/ analysts showing eps clocking in at a negative -1.78 for the year.

Is this correct?

R

Thinking of buying a position

HZNP shows rapid rev growth {+200%} w/ analysts showing eps clocking in at a negative -1.78 for the year. Is this correct?

Rizzz,

This is really very easy information to get for yourself. Honest. You just go to the Yahoo Finance board for the stock in question. Here’s the one for HZNP. http://finance.yahoo.com/q?s=HZNP There’s one for each stock. Then if you look at their first quarter results, you’ll see that they were $52 million, up from $9 million the year before (I’m rounding them off). Therefore up 200% seems quite conservative. They earned 13 cents diluted up from a loss of 30 the year before. My guess is that they’ll make between 75 cents and a dollar (but I’m trying to restrain my optimism).

You have to ignore the GAAP earnings (as usual). Here’s the quote from the report: On a GAAP basis, net loss in the first quarter of 2014 was $206.3 million, which includes a non-cash charge of $204.0 million related to the increase in fair value of the embedded derivative associated with the Company’s convertible senior notes due to an increase in the market value of the Company’s common stock during the first quarter.

What that means is that they have outstanding warrants or something, so when the stock price goes up they have to reprice their non-cash obligation upwards, and since the stock price went up a lot with such good results, they have a $204 million non-cash write-off which gives the phony negative earnings that you are seeing somewhere.

Saul

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HZNP Good time to get in?