The stock of Opko Health (NASDAQ:OPK) didn't have its healthiest day on Friday, falling by 7.8% in the wake of the company's latest earnings report.
For its second quarter, Opko Health posted $442.4 million in revenue, nearly 47% higher on a year-over-year basis. That was fueled by volume increases in the company's diagnostic products, which include COVID-19 testing kits (the company's smaller pharmaceutical operations recorded a 22% gain). Largely on the basis of those testing products, however, analysts were collectively expecting nearly $456.4 million on the top line.
More discouragingly, the healthcare company flipped into the red on the bottom line with a $16.2 million ($0.03 per share) quarterly loss; the year-ago result was a profit of $33.7 million. The prognosticators were estimating a per-share net profit of $0.02. It should be noted, though, that a share issue linked to convertible notes resulted in a one-time loss of more than $11 million, affecting the bottom-line figure.
Opko Health's performance led to several price target cuts from analysts. Piper Sandler's Edward Tenthoff reduced his to $5 per share, exactly half of his previous $10, although he maintained his overweight (buy) recommendation. Barrington analyst Michael Petusky shaved his target to $6 from the preceding $8, yet also held his outperform (buy) recommendation.
This might be a bit of an overreaction; Petusky, for one, is basing his move on a slowdown of COVID testing volumes. With the delta variant running roughshod in many locales, that analysis may be premature.