Categories Earnings, Health Care

Aethlon Medical earnings preview: Cash crunch at its peak ahead of Q4 results

Aethlon Medical (NASDAQ: AEMD) is trading near an all-time low as it heads towards its fourth-quarter financial results, slated for Monday, July 1, after the closing bell. On the back of consecutive disappointing results, Wall Street expects Q4 loss to widen by a cent to $0.07 per share.

In the trailing two quarters, the company had missed earnings expectations.

aethlon medical
The Aethlon Hemopurifier (Image courtesy: Aethlon Medical)

The medical device company is projected to report meager revenues of $50,000, representing a 33% dip compared to last year. The company’s Hemopurifier is a clinical-stage immunotherapeutic device designed to combat cancer and life-threatening viral infections. Hemopurifier has a “Breakthrough Device” designation from The United States Food and Drug Administration (FDA).

The biggest risk facing the company at the moment is shortage of funds. Its primary source of revenue is its contract with the National Institute of Health. Another such contract with the Defense Advanced Research Projects Agency ended recently and a lot would depend on the company’s success in finding another funder.

Increasing costs related to research and development, as well as clinical trials, are creating a financial burden, and the company estimates that it can go on for another year with the revenue sources it currently has.

READ: What is NASH and which biotech companies are vying for its first-mover status

Those who had stayed invested in the stock had a rough last year. The stock has declined 72% in the trailing 12 months, and 77% in the year-to-date period. And with little revenues and almost no profits, it’s hard to remain committed to the stock.

The stock also faces the risk of getting delisted if it continues to lose investor interest.

Meanwhile, the market still has a ray of hope for the stock. For the current fiscal year, analysts’ expect the company to narrow its losses to 33 cents per share, compared to 44 cents per share last year. The year after that, it is projected to slash its losses by another 10 cents per share.

Browse through our earnings calendar and get all scheduled earnings announcements, analyst/investor conference and much more!

Most Popular

Does Unity Software (U) stock has more room to run?

Last month, the IPO market was in a full swing. IPOs of Snowflake (NYSE: SNOW) and JFROG (NASDAQ: FROG) had an impressive opening day in September, the former creating a

PepsiCo (PEP): Steady snacking habits amid pandemic drive strong quarter for beverage giant

PepsiCo Inc. (NASDAQ: PEP) beat market expectations on both revenue and earnings for the third quarter of 2020. The company saw the momentum continue in its snacks business while the

Does the virus-driven boom make Electronic Arts (EA) a good investment?

With more and more people turning to virtual entertainment sources, amid the virus-related movement restrictions, video game publishers like Electronic Arts (NASDAQ: EA) are witnessing unusually high demand. Not surprisingly,

Leave a Reply

Your email address will not be published. Required fields are marked *

Add Comment
Loading...

Cancel
Viewing Highlight
Loading...
Highlight
Close
Top