Infinity Pharmaceuticals (INFI) Announces Fourth Quarter Loss, Exceeds Revenue Estimates


Infinity Pharmaceuticals (INFI) posted a quarterly loss of $0.13 per share against Zacks’ consensus estimate of a loss of $0.14. That compares to a loss of $0.17 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents a profit surprise of 7.14%. A quarter ago, this drugmaker was expected to post a loss of $0.14 per share when it actually produced a loss of $0.12, delivering a surprise 14.29 %.

In the past four quarters, the company has exceeded consensus EPS estimates twice.

Infinite, which is part of the Zacks Medical – Drugs industry, reported revenue of $0.45 million for the quarter ended December 2021, beating Zacks’ consensus estimate of 10.54%. That compares to revenues of $0.44 million a year ago. The company has exceeded consensus revenue estimates three times in the past four quarters.

The sustainability of the immediate stock price movement based on recently released numbers and future earnings forecasts will primarily depend on management’s comments on the earnings call.

Infinity shares are down about 56% year-to-date against a -4% decline in the S&P 500.

What’s next for Infinity?

While Infinity has underperformed the market so far this year, the question on investors’ minds is: what’s next for the stock?

There is no easy answer to this key question, but a reliable measure that can help investors answer it is the company’s earnings outlook. This includes not only current consensus earnings expectations for the upcoming quarter(s), but also how those expectations have changed recently.

Empirical research shows a strong correlation between short-term stock movements and trends in earnings estimate revisions. Investors can track these revisions on their own or rely on a proven scoring tool like Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Prior to this earnings release, the trend of estimate revisions for Infinity is mixed. While the magnitude and direction of estimate revisions may change following the release of the company’s earnings report, the current situation translates into a No. 3 (hold) Zacks ranking for the stock. Thus, the shares should move in line with the market in the near future. You can see the full list of today’s Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how the estimates for the next few quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.15 on $0.39 million in revenue for the upcoming quarter and -$0.64 on $1.65 million in revenue for the current fiscal year .

Investors should be aware that the outlook for the sector can also have a significant impact on stock performance. In terms of Zacks industry rankings, Medical – Drugs is currently in the bottom 39% of over 250 Zacks industries. Our research shows that the top 50% of industries ranked by Zacks outperform the bottom 50% by a factor of more than 2 to 1.

Another stock in the same sector, Adamis Pharmaceuticals (ADMP), has not yet released its results for the quarter ended December 2021. The results are expected to be released on March 31.

This biopharmaceutical company is expected to post a quarterly loss of $0.04 per share in its next report, representing a year-over-year change of +75%. The consensus EPS estimate for the quarter remained unchanged for the past 30 days.

Adamis Pharmaceuticals revenue is expected to be $2.82 million, down 22.5% from the prior year quarter.

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