For healthcare stock Paratek Pharmaceuticals (NASDAQ:PRTK), it’s usually a bad trial result or something similar that knocks share prices down over 22% in a day. But that wasn’t what sent Paratek sliding this time around. No, this time, it was its earnings report.
Things weren’t looking that bad for Paratek when its earnings report came out. Granted, the report could only be called “mixed,” which usually prompts some downward pressure. Here, Paratek posted a loss of $0.13 per share, which was a disaster against an expected gain of $0.10 per share. However, Paratek redeemed itself with revenue figures. It posted $75.6 million in sales, a 137.7% increase against the previous year’s figures that topped current analyst projections of $63.47 million.
Doubled revenue against last year is worth a second look, pretty much every time. But then, Paratek brought out its projections for Fiscal Year 2023. Management expects to bring in between $143 million and $158 million. Sounds good…but analysts were looking for $232.01 million.
Meanwhile, hedge funds aren’t super pleased either. While sentiment among these institutional investors is currently ranked Neutral, their money suggests something slightly different. Hedge funds lowered their holdings in Paratek by 76,200 shares last quarter. Worse, this is the third consecutive quarter that hedge funds dropped their holdings in Paratek, suggesting a pattern in the making.