NOVOCURE LIMITED Reports Q2 FY2023 Earnings Results on July 27
August 27, 2023
🌧️Earnings Overview
On July 27 2023, NOVOCURE LIMITED ($NASDAQ:NVCR) reported its earnings results for the quarter ending June 30 2023. Total revenue for the period was USD 126.0 million, a decrease of 10.5% year-over-year. Reported net income was USD -57.4 million, compared to -24.0 million in the same quarter of the previous year.
Share Price
On the same day, the stock opened at $40.3 before falling to $33.9 by the end of the day, a plunge of 15.9% from its previous closing price of $40.3. This 15.9% decline sent shockwaves through the stock market as investors and analysts scrambled to make sense of the sudden drop in the share price. These results suggest that NOVO is not performing as well as expected and investors are concerned about the company’s future prospects. As a result, investors have been selling off their shares in the company, leading to the sharp decline in the share price on July 27. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Novocure Limited. More…
| Total Revenues | Net Income | Net Margin |
| 507.66 | -174.36 | -33.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Novocure Limited. More…
| Operations | Investing | Financing |
| -20.75 | -209.91 | 20.32 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Novocure Limited. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.16k | 743.33 | 3.91 |
Key Ratios Snapshot
Some of the financial key ratios for Novocure Limited are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 7.5% | – | -35.4% |
| FCF Margin | ROE | ROA |
| -9.0% | -26.5% | -9.7% |
Analysis
After conducting an analysis of NOVOCURE LIMITED‘s financials, GoodWhale’s Star Chart classified the company as an ‘elephant’, a type of company that is rich in assets after deducting off liabilities. This type of company may be attractive to value investors who are looking for a long-term investment that is capable to sustain future operations in times of crisis. GoodWhale’s health score for NOVOCURE LIMITED was 7/10, which indicates the company is in a good position in terms of cashflow and debt. Out of all the categories, the company scored the highest in asset and growth and was weaker in dividend. This makes sense as the company has strong balance sheet with a lot of assets and is well positioned for future growth but does not have many dividend paying options. Therefore, value investors may be interested in such a company due to its strong asset and growth potential. More…
Peers
In the battle to develop novel cancer treatments, NovoCure Ltd is up against some stiff competition. Atara Biotherapeutics Inc, XBiotech Inc, and InfuSystems Holdings Inc are all working on innovative therapies that could one day provide patients with more options and better outcomes. NovoCure, for its part, is focused on developing a unique approach to cancer treatment that uses electric fields to disrupt tumor growth. While the company’s technology is still in the early stages of development, it has the potential to revolutionize the way cancer is treated. Only time will tell if NovoCure can turn its promising technology into a commercial success.
– Atara Biotherapeutics Inc ($NASDAQ:ATRA)
Atara Biotherapeutics Inc is a clinical stage biopharmaceutical company. It is engaged in developing therapies for patients with unmet medical needs. The company’s product candidates include allogeneic Epstein-Barr virus T cell therapies, myeloid leukemia T cell therapies and solid tumor T cell therapies.
– XBiotech Inc ($NASDAQ:XBIT)
As of 2022, XBiotech Inc had a market cap of 101.67M and a Return on Equity of -7.4%. The company is a clinical-stage biopharmaceutical company engaged in discovering and developing True Human monoclonal antibodies for treating serious diseases with unmet medical needs. Its lead product candidate is Xilonix, an anti-IL-1 beta antibody, which is in Phase III clinical trials for the treatment of refractory metastatic colorectal cancer and in Phase II clinical trials for the treatment of non-small cell lung cancer, pancreatic cancer, and gastric cancer.
– InfuSystems Holdings Inc ($NYSEAM:INFU)
InfuSystems Holdings Inc is a provider of infusion pumps and related services in the United States and Canada. The company offers a range of pumps, including gravity, ambulatory, syringe, and patient-controlled analgesia pumps. It also provides services, such as pump maintenance and support, pump rental, and patient education.
Summary
NOVOCURE LIMITED recently announced their second quarter earnings results for FY2023, which ended on June 30 2023. Total revenue for this quarter decreased by 10.5% to USD 126.0 million, resulting in a net income of USD -57.4 million, compared to -24.0 million from the same period last year. Following the announcement, the stock price saw a decline on the same day.
For investors, this could indicate a bearish trend in the company’s stock price, although further analysis is needed to confirm any claims. From a financial perspective, this quarter’s results suggest that the company’s financial performance has weakened, and investors should exercise caution when considering investments in NOVOCURE LIMITED.
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