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

NovoCure (NASDAQ:NVCR) issued its earnings results on Thursday. The medical equipment provider reported ($0.13) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.33) by $0.20, FiscalAI reports. The firm had revenue of $183.58 million during the quarter, compared to analysts’ expectations of $172.44 million. NovoCure had a negative net margin of 25.66% and a negative return on equity of 50.82%. The firm’s revenue was up 15.6% compared to the same quarter last year. During the same quarter last year, the company posted ($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 NovoCure stock traded up $3.97 during trading hours on Thursday, hitting $19.54. The company’s stock had a trading volume of 3,388,889 shares, compared to its average volume of 1,745,616. The firm has a fifty day moving average of $16.60 and a 200-day moving average of $14.07. The company has a debt-to-equity ratio of 0.71, a quick ratio of 2.70 and a current ratio of 2.90. The stock has a market cap of $2.26 billion, a price-to-earnings ratio of -12.71 and a beta of 0.94. NovoCure has a twelve month low of $9.82 and a twelve month high of $20.55.

Insider Activity at NovoCure

In other NovoCure news, Director Timothy J. Scannell sold 2,945 shares of the company’s stock in a transaction on Tuesday, June 2nd. The stock was sold at an average price of $15.77, for a total transaction of $46,442.65. Following the transaction, the director directly owned 14,288 shares in the company, valued at $225,321.76. This represents a 17.09% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 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 NovoCure stock in a transaction 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 completion of 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 ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 51,943 shares of company stock valued at $893,171 over the last quarter. 5.52% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. Corient Private Wealth LLC increased its stake in NovoCure by 178.0% during the 4th quarter. Corient Private Wealth LLC now owns 97,368 shares of the medical equipment provider’s stock worth $1,259,000 after buying an additional 62,341 shares during the period. Mercer Global Advisors Inc. ADV increased its position 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 acquiring an additional 4,124 shares during the period. Empowered Funds LLC acquired a new stake in shares of NovoCure in the fourth quarter valued at $33,000. XTX Topco Ltd boosted its holdings in NovoCure by 159.2% in the fourth 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 period. Finally, Vestal Point Capital LP boosted its holdings in 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. Institutional investors and hedge funds own 84.61% of the company’s stock.

Wall Street Analysts Forecast Growth

Several analysts recently commented on NVCR shares. Zacks Research lowered NovoCure from a “hold” rating to a “strong sell” rating in a report on Tuesday, July 14th. Evercore reiterated an “outperform” rating on shares of NovoCure in a research note on Friday, May 1st. Wells Fargo & Company raised their price target on shares of NovoCure from $13.50 to $17.00 and gave the company an “equal weight” rating in a research report on Monday, May 4th. Wedbush reiterated a “neutral” rating and issued a $18.00 price objective on shares of NovoCure in a research report on Thursday, April 16th. Finally, JPMorgan Chase & Co. started coverage on NovoCure in a research report on Monday, July 13th. They set a “neutral” rating and a $17.00 target price on the stock. Two equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Hold” and a consensus price target of $23.60.

About NovoCure

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.