Journey Medical (NASDAQ:DERM) Releases Earnings Results, Misses Expectations By $0.09 EPS

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 results on Tuesday. The company reported ($0.16) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.07) by ($0.09), Zacks reports. The firm had revenue of $15.01 million during the quarter, compared to the consensus estimate of $14.93 million. Journey Medical had a negative return on equity of 48.69% and a negative net margin of 15.49%.

Journey Medical Stock Down 4.3%

Shares of Journey Medical stock traded down $0.31 on Friday, hitting $6.95. The company had a trading volume of 267,426 shares, compared to its average volume of 175,392. The stock has a market capitalization of $161.94 million, a price-to-earnings ratio of -18.29 and a beta of 0.80. Journey Medical has a 1 year low of $3.54 and a 1 year high of $8.90. The stock has a 50 day moving average of $7.15 and a 200-day moving average of $6.52. The company has a debt-to-equity ratio of 1.11, a quick ratio of 1.03 and a current ratio of 1.27.

Wall Street Analyst Weigh In

Several brokerages have issued reports on DERM. Lake Street Capital increased their price target on Journey Medical from $9.00 to $13.00 and gave the stock a "buy" rating in a report on Wednesday. Alliance Global Partners reiterated a "buy" rating on shares of Journey Medical in a report on Thursday, May 15th. Finally, Wall Street Zen lowered shares of Journey Medical from a "buy" rating to a "hold" rating in a research note on Sunday, July 6th.

Institutional Trading of Journey Medical

Several institutional investors and hedge funds have recently modified their holdings of the stock. Wasatch Advisors LP raised its stake in shares of Journey Medical by 23.8% in the second 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 last quarter. Geode Capital Management LLC raised its stake in shares of Journey Medical by 130.7% in the second 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 last quarter. Opaleye Management Inc. raised its stake in shares of Journey Medical by 37.0% in the second 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 last quarter. Creative Planning raised its stake in shares of Journey Medical by 178.5% in the second quarter. Creative Planning now owns 32,764 shares of the company's stock worth $235,000 after purchasing an additional 21,000 shares during the last quarter. Finally, Jane Street Group LLC purchased a new stake in shares of Journey Medical in the first quarter worth approximately $110,000. 7.25% of the stock is owned by hedge funds and other institutional investors.

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.