Daiichi Sankyo (OTCMKTS:DSNKY) Shares Gap Up on Earnings Beat

Key Points

• Daiichi Sankyo beat quarterly expectations, reporting EPS of $0.29 versus the $0.21 consensus and revenue of $3.77 billion compared with estimates of $3.58 billion.
• The earnings beat sent shares up 10.3%, from a prior close of $16.56 to an opening price of $18.00; shares last traded at $18.17.
• Analyst sentiment remains cautious: Jefferies downgraded the stock to “Hold,” Zacks Research cut it to “Strong Sell,” and MarketBeat lists an average rating of “Reduce.”

Shares of Daiichi Sankyo Co., Ltd. - Sponsored ADR (OTCMKTS:DSNKY - Get Free Report) gapped up before the market opened on Monday following a better than expected earnings announcement. The stock had previously closed at $16.56, but opened at $18.00. Daiichi Sankyo shares last traded at $18.17, with a volume of 182,633 shares changing hands.

The company reported $0.29 EPS for the quarter, beating analysts' consensus estimates of $0.21 by $0.08. Daiichi Sankyo had a net margin of 12.13% and a return on equity of 16.31%. The firm had revenue of $3.77 billion during the quarter, compared to the consensus estimate of $3.58 billion.

Analyst Ratings Changes

A number of analysts recently issued reports on the company. Jefferies Financial Group downgraded Daiichi Sankyo from a "buy" rating to a "hold" rating in a research report on Thursday, July 30th. Zacks Research lowered shares of Daiichi Sankyo from a "hold" rating to a "strong sell" rating in a report on Tuesday, October 20th. One research analyst has rated the stock with a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Reduce".

Daiichi Sankyo Stock Up 10.3%

The company has a market cap of $34.02 billion, a P/E ratio of 18.63, a price-to-earnings-growth ratio of 1.99 and a beta of -0.11. The company has a debt-to-equity ratio of 0.29, a quick ratio of 1.96 and a current ratio of 2.92. The business's fifty day moving average is $17.77 and its two-hundred day moving average is $17.66.

About Daiichi Sankyo

Daiichi Sankyo Co, Ltd. is a Japan-based global pharmaceutical company that researches, develops, manufactures and markets prescription medicines. The company focuses primarily on oncology, with additional activities in areas such as cardiovascular disease, rare diseases and other specialty therapies. Its products are marketed in Japan and internationally through subsidiaries, partnerships and licensing agreements.

Daiichi Sankyo is particularly known for its antibody-drug conjugate technology, which is designed to deliver cancer-killing agents more selectively to tumor cells.

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