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

Key Points

• NovoCure beat quarterly expectations, reporting adjusted EPS of -$0.13 versus the expected -$0.33 and revenue of $183.58 million, above estimates of $172.44 million. Revenue rose 15.6% year over year.
• On the conference call, management said it posted its strongest commercial quarter to date, with adjusted EBITDA turning positive at $11 million. The company also highlighted continued growth in Optune Gio and early traction for Optune Pax.
• NovoCure raised full-year guidance to $710 million-$725 million in revenue and $0-$15 million in adjusted EBITDA, and said it now expects to reach full-year 2026 adjusted EBITDA breakeven.

NovoCure (NASDAQ:NVCR - Get Free Report) announced its earnings results on Thursday. The medical equipment provider reported ($0.13) earnings per share for the quarter, topping analysts' consensus estimates of ($0.33) by $0.20, FiscalAI reports. The company had revenue of $183.58 million for the quarter, compared to analyst estimates of $172.44 million. NovoCure had a negative return on equity of 50.82% and a negative net margin of 25.66%.The firm's quarterly revenue was up 15.6% compared to the same quarter last year. During the same quarter last year, the company earned ($0.36) earnings per share.

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 Trading Up 25.5%

Shares of NVCR traded up $3.97 during trading hours on Thursday, reaching $19.54. 3,388,889 shares of the company traded hands, compared to its average volume of 1,745,616. NovoCure has a 12-month low of $9.82 and a 12-month high of $20.55. The stock's fifty day moving average price is $16.60 and its 200 day moving average price is $14.07. The firm has a market cap of $2.26 billion, a price-to-earnings ratio of -12.71 and a beta of 0.94. The company has a current ratio of 2.90, a quick ratio of 2.70 and a debt-to-equity ratio of 0.71.

Wall Street Analyst Weigh In

NVCR has been the topic of a number of recent research reports. Zacks Research lowered shares of NovoCure from a "hold" rating to a "strong sell" rating in a research note on Tuesday, July 14th. Wedbush restated a "neutral" rating and set a $18.00 price target on shares of NovoCure in a research note on Thursday, April 16th. Evercore reissued an "outperform" rating on shares of NovoCure in a report on Friday, May 1st. Weiss Ratings raised shares of NovoCure from a "sell (e+)" rating to a "sell (d-)" rating in a research note on Monday, June 1st. Finally, Wells Fargo & Company increased their price objective on NovoCure from $13.50 to $17.00 and gave the company an "equal weight" rating in a research note on Monday, May 4th. Two investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Hold" and an average price target of $23.60.

Insiders Place Their Bets

In other news, Director Allyson J. Ocean sold 2,945 shares of NovoCure stock in a transaction that occurred on 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 11,324 shares of the company's stock, valued at $178,579.48. The trade was a 20.64% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director W Anthony Vernon sold 2,945 shares of the stock in a transaction that occurred on Tuesday, June 2nd. The shares were sold at an average price of $15.77, for a total transaction of $46,442.65. Following the sale, the director directly owned 197,657 shares of the company's stock, valued at $3,117,050.89. The trade was a 1.47% decrease in their position. 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 three months, insiders sold 51,943 shares of company stock worth $893,171. 5.52% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. Corient Private Wealth LLC grew its stake in shares of NovoCure by 178.0% during the fourth quarter. Corient Private Wealth LLC now owns 97,368 shares of the medical equipment provider's stock worth $1,259,000 after acquiring an additional 62,341 shares during the last quarter. Mercer Global Advisors Inc. ADV lifted its stake in shares of NovoCure by 14.5% during the fourth quarter. Mercer Global Advisors Inc. ADV now owns 32,660 shares of the medical equipment provider's stock worth $422,000 after buying an additional 4,124 shares during the period. Empowered Funds LLC purchased a new stake in shares of NovoCure during the fourth quarter valued at $33,000. XTX Topco Ltd grew its stake in NovoCure by 159.2% during the 4th quarter. XTX Topco Ltd now owns 58,795 shares of the medical equipment provider's stock valued at $760,000 after purchasing an additional 36,111 shares during the last quarter. Finally, Vestal Point Capital LP increased its holdings in shares of NovoCure by 31.2% in the fourth quarter. Vestal Point Capital LP now owns 525,000 shares of the medical equipment provider's stock valued at $6,788,000 after purchasing an additional 125,000 shares during the period. 84.61% of the stock is owned by institutional investors and hedge funds.

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.

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