ARIAD Pharmaceuticals Shares Plunged: What You Need to Know
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of ARIAD Pharmaceuticals (NAS: ARIA) fell 10% in a slow tailspin today after the company released earnings.
So what: Revenue dwindled to just $66,000, down from $175 million a year ago, but that wasn't the big surprise today. A loss of $47.8 million, or $0.36 per share, has investors scratching their heads today, since they were expecting only an $0.18-per-share loss.
Now what: The year-over-year comparison really doesn't mean much for ARIAD, and management was excited about Merck's (NYS: MRK) submission of ridaforolimus for regulatory approval in the EU late last week. The loss is something to keep your eye on, but I don't think investors need to entirely change their thesis on ARIAD because of today's report.
Interested in more info on ARIAD Pharmaceuticals? Add it to your watchlist.
At the time this article was published Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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