Journey Medical (NASDAQ:DERM) Posts Earnings Results, Misses Estimates By $0.01 EPS

Journey Medical (NASDAQ:DERM) posted its earnings results on Wednesday. The company reported ($0.08) EPS for the quarter, missing analysts’ consensus estimates of ($0.07) by ($0.01), FiscalAI reports. The company had revenue of $15.96 million during the quarter, compared to the consensus estimate of $15.47 million. Journey Medical had a negative return on equity of 46.40% and a negative net margin of 18.48%.

Here are the key takeaways from Journey Medical’s conference call:

• EMROSI was the clear growth driver, with Q1 revenue of $6.3 million and prescriptions rising to about 30,000, while the company said uptake improved sequentially despite typical early-year seasonality.
• Journey Medical said it now has pricing agreements with the three largest PBM-linked GPOs, giving EMROSI access to more than 169 million of 192 million commercial lives and supporting broader formulary adoption.
• The company highlighted improving product economics, with revenue per prescription rising sequentially and the refill-to-new prescription ratio moving to about 1.5:1, which management views as evidence of growing patient satisfaction and payer progress.
• First-quarter financials showed 21% revenue growth to $16 million, a reduced GAAP net loss of $2.2 million, and positive adjusted EBITDA of $600,000, underscoring improving operating leverage.
• Management plans to add up to five sales representatives and potentially launch up to two new niche dermatology products later this year, while also pursuing additional publications and payer discussions for EMROSI.

Journey Medical Trading Up 3.0%

NASDAQ DERM traded up $0.15 during trading hours on Wednesday, reaching $5.16. The company’s stock had a trading volume of 499,065 shares, compared to its average volume of 195,900. The firm has a fifty day simple moving average of $5.93 and a 200-day simple moving average of $7.33. The stock has a market cap of $141.02 million, a P/E ratio of -10.98 and a beta of 1.03. Journey Medical has a 52 week low of $4.31 and a 52 week high of $9.56. The company has a debt-to-equity ratio of 0.79, a current ratio of 1.79 and a quick ratio of 1.53.

Analyst Ratings Changes

A number of research firms have recently commented on DERM. HC Wainwright reissued a “buy” rating and issued a $13.00 target price on shares of Journey Medical in a report on Thursday, March 26th. Weiss Ratings reissued a “sell (d-)” rating on shares of Journey Medical in a report on Monday, April 20th. Three equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $13.00.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in DERM. Bank of America Corp DE raised its holdings in Journey Medical by 4,707.0% in the 2nd quarter. Bank of America Corp DE now owns 4,134 shares of the company’s stock valued at $30,000 after buying an additional 4,048 shares during the last quarter. Raymond James Financial Inc. bought a new position in Journey Medical in the 2nd quarter valued at approximately $36,000. JPMorgan Chase & Co. bought a new position in Journey Medical in the 2nd quarter valued at approximately $41,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. bought a new position in Journey Medical in the 2nd quarter valued at approximately $48,000. Finally, Russell Investments Group Ltd. bought a new position in Journey Medical in the 3rd quarter valued at approximately $61,000. Institutional investors own 7.25% of the company’s stock.

Journey Medical Company Profile

Journey Medical Corp, headquartered in Fairfield, New Jersey, is a commercial dermatology company focused on acquiring, developing and marketing prescription dermatology products in the United States. Since its incorporation in 2019, the company has built a portfolio of both branded and generic topical therapies designed to address a range of skin conditions, including acne, atopic dermatitis, fungal infections and inflammatory lesions.

The company’s product lineup features antibiotic/anti-inflammatory combinations and corticosteroid-based formulations delivered through proprietary gel, cream and foam vehicles.