Why Horizon Pharma Inc. Shares Popped
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 biotechnology company Horizon Pharma soared 28% today after its quarterly results easily topped Wall Street expectations.
So what: The stock has pulled back in recent weeks on valuation concerns, but today's wide third-quarter beat -- loss of $0.03 per share on revenue of $26.2 million versus the consensus $0.25 loss and $18.3 million top line -- reignites enthusiasm over its path to profitability. In fact, total prescriptions for its Horizon's franchise Duexis and Rayos drugs increased 17.6% and 12.9%, respectively, giving analysts plenty of good vibes over its competitive position going forward.
Now what: Don't expect the growth to slow any time soon.
"We achieved continued acceleration in prescriptions and revenue in the third quarter, with both DUEXIS and RAYOS seeing significant growth in net revenue on a sequential quarter over quarter basis," said Chairman and CEO Timothy Walbert. "This sales growth, along with improvement in the bottom line and cash burn, continues our momentum toward becoming a profitable company."
Of course, with Horizon shares now up about 140% over their 52-week lows, Fools will need plenty of biotech savvy to estimate how much of that momentum is already baked into the price.
More reliable ways to build wealth
Dividend stocks can make you rich. It's as simple as that. While they don't garner the notoriety of high-flying growth stocks, they're also less likely to crash and burn. And over the long term, the compounding effect of the quarterly payouts, as well as their growth, adds up faster than most investors imagine. With this in mind, our analysts sat down to identify the absolute best of the best when it comes to rock-solid dividend stocks, drawing up a list in this free report of nine that fit the bill. To discover the identities of these companies before the rest of the market catches on, you can download this valuable free report by simply clicking here now.
The article Why Horizon Pharma Inc. Shares Popped originally appeared on Fool.com.
Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.