NovoCure (NASDAQ:NVCR) Issues Earnings Results, Beats Estimates By $0.20 EPS

NovoCure (NASDAQ:NVCR) posted its quarterly earnings data on Thursday. The medical equipment provider reported ($0.13) earnings per share for the quarter, topping the consensus estimate of ($0.33) by $0.20, FiscalAI reports. NovoCure had a negative net margin of 25.66% and a negative return on equity of 50.82%. The firm had revenue of $183.58 million for the quarter, compared to analysts’ expectations of $172.44 million. During the same period in the previous year, the company posted ($0.36) EPS. The company’s quarterly revenue was up 15.6% compared to the same quarter last year.

Here are the key takeaways from NovoCure’s conference call:

• NovoCure posted its strongest commercial quarter to date, with Q2 revenue of $184 million up 16% year over year and adjusted EBITDA turning positive at $11 million.
• Optune Gio remained the core growth driver, ending the quarter with 4,636 active patients on therapy, up 11% year over year, with particularly strong growth in the U.S., Germany, Japan, and global markets.
• Optune Pax launch momentum continued in locally advanced pancreatic cancer, with 418 prescriptions and 285 patients on therapy at quarter-end; management said adoption is broadening across community and academic sites and repeat prescribing is increasing.
• Management received CE Mark for Optune Pax in Europe and has begun Germany labeling, registration, and prescriber certification, but expects reimbursement and hospital contracting to make the ramp slower than in the U.S.
• The company raised full-year guidance to $710 million-$725 million in revenue and $0-$15 million in adjusted EBITDA, while also saying it now expects to reach full-year 2026 adjusted EBITDA breakeven.
• NovoCure is refocusing R&D around pancreatic cancer and broader label expansion, including an upcoming IDE trial with divarasib/RAS inhibitors, while trimming LUNAR-2 spend by about $90 million to support profitability goals.

NovoCure Stock Performance

NASDAQ:NVCR traded up $4.05 during mid-day trading on Thursday, hitting $19.62. 4,180,901 shares of the company’s stock traded hands, compared to its average volume of 1,754,584. The firm has a market capitalization of $2.27 billion, a price-to-earnings ratio of -12.82 and a beta of 0.94. The firm has a 50 day moving average of $16.60 and a two-hundred day moving average of $14.07. The company has a current ratio of 2.90, a quick ratio of 2.70 and a debt-to-equity ratio of 0.71. NovoCure has a 12 month low of $9.82 and a 12 month high of $20.55.

Analysts Set New Price Targets

A number of equities research analysts have issued reports on the stock. Weiss Ratings raised shares of NovoCure from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Monday, June 1st. Evercore reaffirmed an “outperform” rating on shares of NovoCure in a research report on Friday, May 1st. Wells Fargo & Company boosted their price target on NovoCure from $13.50 to $17.00 and gave the company an “equal weight” rating in a research note on Monday, May 4th. HC Wainwright reiterated a “buy” rating and issued a $46.00 target price (down from $48.00) on shares of NovoCure in a research note on Thursday, June 18th. Finally, Zacks Research lowered shares of NovoCure from a “hold” rating to a “strong sell” rating in a research note on Tuesday, July 14th. Two analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, NovoCure presently has a consensus rating of “Hold” and an average price target of $23.60.

Insider Activity at NovoCure

In other NovoCure news, CEO Frank X. Leonard sold 34,273 shares of the firm’s stock in a transaction on Thursday, June 4th. The shares were sold at an average price of $17.93, for a total value of $614,514.89. Following the sale, the chief executive officer directly owned 459,520 shares in the company, valued at $8,239,193.60. This trade represents a 6.94% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Timothy J. Scannell sold 2,945 shares of the business’s stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $15.77, for a total value of $46,442.65. Following the transaction, the director owned 14,288 shares in the company, valued at $225,321.76. This represents a 17.09% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders sold 51,943 shares of company stock valued at $893,171. 5.52% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On NovoCure

A number of hedge funds and other institutional investors have recently made changes to their positions in NVCR. Empowered Funds LLC acquired a new stake in NovoCure during the fourth quarter valued at approximately $33,000. Kestra Advisory Services LLC bought a new position in NovoCure during the 4th quarter valued at about $49,000. Larson Financial Group LLC boosted its position in NovoCure by 662.1% in the third quarter. Larson Financial Group LLC now owns 4,100 shares of the medical equipment provider’s stock valued at $53,000 after buying an additional 3,562 shares in the last quarter. Headlands Technologies LLC bought a new stake in NovoCure during the second quarter worth about $88,000. Finally, Acadian Asset Management LLC acquired a new stake in shares of NovoCure during the first quarter worth approximately $87,000. 84.61% of the stock is owned by institutional investors.

NovoCure Company Profile

NovoCure is a global oncology company pioneering Tumor Treating Fields (TTFields), a novel anti-mitotic therapy for solid tumors. The company’s non-invasive treatment platforms deliver low-intensity, alternating electric fields designed to disrupt cancer cell division. NovoCure’s approach offers an alternative modality to complement existing therapies in oncology, with a focus on hard-to-treat malignancies.

Founded in 2000 and headquartered in Haifa, Israel, NovoCure maintains a second operational center in Portsmouth, New Hampshire.