Why Opko Health Stock Was a Surprise Winner This Week
You wouldn't expect a company that missed estimates in its latest quarter to jump in price across the subsequent trading days. But that's been the situation with Opko Health's (NASDAQ: OPK) shares since the healthcare diagnostics company reported its second-quarter results after market hours last Friday. Counterintuitively, week-to-date, as of Thursday afternoon, Opko stock was up by almost 10%, according to S&P Global Market Intelligence.
There was no ambiguity -- Opko fell notably short of expectations for the period. A sharp decline in demand for COVID-19 testing solutions resulted in revenue tumbling by 30% year over year to land at just under $310 million. Not to be outdone, the company's net income deepened considerably. It fell to almost $102 million, or $0.14 per share, from the year-ago quarter's mere $16-million deficit.
Analysts were expecting better performance -- much better. On average, they were modeling just shy of $327 million for revenue and a $0.01 per share profit on the bottom line.
Source Fool.com
