Journey Medical (NASDAQ:DERM) Issues Earnings Results

Key Points

• Journey Medical reported a quarterly earnings of ($0.16) per share, falling short of analysts' expectations by $0.10.
• The company's net margin stands at -14.76% and a negative return on equity of 52.03%, indicating financial distress.
• Despite the earnings miss, shares of Journey Medical increased by $0.67 on the day, reaching $8.54, with trading volume significantly higher than its average.

Journey Medical (NASDAQ:DERM - Get Free Report) announced its quarterly earnings data on Tuesday. The company reported ($0.16) EPS for the quarter, missing the consensus estimate of ($0.07) by ($0.09), Zacks reports. Journey Medical had a negative net margin of 15.49% and a negative return on equity of 48.69%. The firm had revenue of $15.01 million for the quarter, compared to analysts' expectations of $14.93 million.

Journey Medical Stock Performance

Shares of NASDAQ:DERM traded down $0.31 during trading on Friday, hitting $6.95. The company's stock had a trading volume of 267,426 shares, compared to its average volume of 185,627. The company has a 50-day moving average of $7.15 and a 200-day moving average of $6.54. Journey Medical has a 12 month low of $3.54 and a 12 month high of $8.90. The company has a debt-to-equity ratio of 1.11, a current ratio of 1.27 and a quick ratio of 0.95.

Analysts Set New Price Targets

DERM has been the topic of a number of recent analyst reports. Wall Street Zen downgraded shares of Journey Medical from a "buy" rating to a "hold" rating in a report on Sunday, July 6th. Alliance Global Partners reaffirmed a "buy" rating on shares of Journey Medical in a report on Thursday, May 15th. Finally, Lake Street Capital raised their price target on shares of Journey Medical from $9.00 to $13.00 and gave the company a "buy" rating in a report on Wednesday.

Hedge Funds Weigh In On Journey Medical

Several institutional investors have recently made changes to their positions in DERM. Wasatch Advisors LP lifted its stake in shares of Journey Medical by 23.8% in the 2nd quarter. Wasatch Advisors LP now owns 1,152,059 shares of the company's stock worth $8,272,000 after purchasing an additional 221,456 shares during the period. Geode Capital Management LLC lifted its stake in shares of Journey Medical by 130.7% in the 2nd quarter. Geode Capital Management LLC now owns 262,353 shares of the company's stock worth $1,884,000 after purchasing an additional 148,612 shares during the period. Opaleye Management Inc. lifted its stake in shares of Journey Medical by 37.0% in the 2nd quarter. Opaleye Management Inc. now owns 95,000 shares of the company's stock worth $682,000 after purchasing an additional 25,677 shares during the period. Creative Planning raised its stake in Journey Medical by 178.5% during the 2nd quarter. Creative Planning now owns 32,764 shares of the company's stock worth $235,000 after acquiring an additional 21,000 shares during the period. Finally, Jane Street Group LLC bought a new stake in Journey Medical during the 1st quarter worth approximately $110,000. Institutional investors own 7.25% of the company's stock.

Journey Medical Company Profile

Journey Medical Corporation focuses on the development and commercialization of pharmaceutical products for the treatment of dermatological conditions in the United States. The company's marketed products include Qbrexza, a medicated cloth towelette for the treatment of primary axillary hyperhidrosis; Accutane, an oral isotretinoin drug to treat severe recalcitrant nodular acne; and Amzeeq, a topical formulation of minocycline for the treatment of inflammatory lesions of non-nodular moderate to severe acne vulgaris.