PDL BioPharma Inc (NASDAQ:PDLI) Earnings Shock Analysts


PDL BioPharma Inc (NASDAQ:PDLI) stock rocketed higher before settling back and closing around the $2.60 resistance level. Buyers were possibly hoping to jump in front of a positive financial report which was due for release after the market close. Early buyers were rewarded as the company’s financial news release revealed earnings of $0.26 – way above analyst expectations of a figure under $0.10. Volume was heavy, around double the 30-day, daily average.

One month price chart for PDLI

Incline Village, NV-based PDL BioPharma Inc (NASDAQ:PDLI) reported total Q2 2017 revenue of $143.8 million – a more than five-fold gain from the same quarter last year. Patent royalty increases drove revenues – primarily from Depomed, which accounted for $34.6 million.

PDL BioPharma (NASDAQ: PDLI) acquires and manages a portfolio of companies, products, royalty agreements and debt facilities in the biotech, pharmaceutical and medical device industries. In late 2012, PDL BioPharma (NASDAQ: PDLI) began monetizing their portfolio of assets using licensing to generate royalties. In 2016, PDL began making equity investments in commercial stage companies. The quality of the income generating assets and potential returns on investment drives their investment strategy.

YTD, PDL BioPharma (NASDAQ: PDLI) has gained over 22% but is still over 30% from its 52-week high of $3.77. Over 10% of the stock’s float is held by short positions and the analysts that follow the stock rate it as a “Hold”. Currently, the analysts have a target price for PDLI of $3.25.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.