Will Opko Health bounce back from a $15M loss?

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Nov 8, 2016, 12:35pm EST

Opko Health on Monday reported a loss in the third quarter, beating Wall Street expectations of an even bigger downturn, but churning out figures smaller than the same quarter last year.

The Miami-based company (Nasdaq: OPK), helmed by billionaire CEO Phillip Frost, reported in the fiscal quarter ending Sept. 30 a net loss of $15 million compared to net income of $128.2 million in Q3 2015. The company also had a loss of 3 cents per share — 2 cents fewer than the average projection of analysts surveyed by Zacks Investment Research.

Opko CFO Adam Logal said on a Monday night earning conference call that the company is in good standing and “in a strong position” to push forward with various endeavors, including a foray into the $60 billion pet health industry, the release of drug Rayaldee and commercialization of prostate cancer screening test 4Kscore.

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The earnings report nonetheless sent Opko (NYSE: OPK) stock plummeting more than 7 percent Tuesday. Two major banks, Jefferies and Oppenheimer, also downgraded their ratings of the stock.

Opko took a similar beating in the public markets in October when news of a “no-coverage” decision on 4KScore by one of the country’s biggest Medicare administrative contractors surfaced.

The 4KScore test – studied in over 22,000 patients, with results presented in 12 peer-reviewed publications – was shown to improve health outcomes in men by avoiding unnecessary biopsies while identifying those at high risk for serious prostate cancer. Without Medicare coverage, its path to commercialization is uncertain.

Analysts called the Palmetto decision “a major setback” for Opko.

“As you know, while Palmetto does not administrate Medicare submissions for the 4Kscore because our laboratory's not within their region, they nevertheless issued a negative LCD on 4Kscore,” said Opko EVP of administration Steve Rubin.

He added that the company is working with Novitas Solutions, another major Medicare contractor, to reinstate its positive local coverage decision.

“We have submitted a complete clinical dossier to Novitas, which included background information, physician experience, and extensive clinical validation,” Rubin said. “We expect Novitas to include 4Kscore in its February review cycle for a draft local coverage determination.”

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Market Scope: F-Score and Volatility Review for Opko Health, Inc. (NASDAQ:OPK)

December 12, 2016 Marion Contributor


Investors may be trying to do their homework on shares of Opko Health, Inc. (NASDAQ:OPK). Investors looking for value may be focusing on the Piotroski F-Score. Opko Health, Inc. has a current Piotroski F-Score of 6. The mission of the F-Score is to help spot companies with strengthening balance sheets, and to weed out poor performers. The Piotroski F-Score is named after its developer Joseph Piotroski. The F-Score uses nine different variables based on a company’s financial statement. One point is provided to each test that a stock passes. Typically, a stock scoring an 8 or 9 would be seen as strong while a stock with a score from 0-2 would be viewed as weak.

Every investor strives to conquer the markets. Many investors may have to work through different trading strategies to find one that works for them. Some individuals may be looking to monitor stock price momentum by looking at different historical data. Opko Health, Inc. (NASDAQ:OPK) currently has a 6 month price index of 1.17957. The six month price index is simply measured by dividing the current share price by the share price six months ago. A ratio above one indicates an increase in share price over the six month period. A ratio below one indicates that the price has decreased over that specific period.

Taking a look at some volatility information, Opko Health, Inc.’s 12 month volatility is presently 37.077300. The 6 month volatility is 36.048400, and the 3 month is spotted at 38.046900. Checking on historical volatility can help gauge how much the stock price has fluctuated over the given period of time. Although past volatility action may help predict the future volatility of a stock, it may also be greatly different when taking into account other factors that may be driving price action during the period of time.

Investors may be looking to track FCF or Free Cash Flow scores for Opko Health, Inc. (NASDAQ:OPK). Free cash flow represents the amount of cash that a company has generated for shareholders after paying off expenses and investing in growth. FCF may be a very useful way to help measure the financial health of a specific company. At the time of writing, Opko Health, Inc. NASDAQ:OPK has an FCF quality score of 0.222616. The free quality score helps estimate the stability of free cash flow. FCF quality is calculated as the 12 ltm cash flow per share over the average of the cash flow numbers. Looking at this score, it is generally considered that the lower the ratio, the better. Currently, Opko Health, Inc. NASDAQ:OPK has an FCF score of -0.121090. The FCF score is determined by merging free cash flow stability with free cash flow growth. In general, a higher FCF score value would represent high free cash flow growth.

Diving in a bit further, we can take a quick look at the Q.i. (Liquidity) Value. Opko Health, Inc. has a present Q.i. value of 60.00000. This value ranks stocks using EBITDA yield, FCF yield, earnings yield and liquidity ratios. The Q.i. value may help spot companies that are undervalued. A larger value would represent low turnover and a higher chance of shares being mispriced. A lower value may indicate larger traded value meaning more sell-side analysts may cover the company leading to a smaller chance shares are priced improperly.