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

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

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 Price Performance

Journey Medical stock traded up $1.03 during trading hours on Thursday, hitting $6.22. 512,034 shares of the company traded hands, compared to its average volume of 199,165. The firm has a market cap of $169.94 million, a P/E ratio of -13.23 and a beta of 1.03. The company has a quick ratio of 1.53, a current ratio of 1.79 and a debt-to-equity ratio of 0.79. The firm’s 50-day simple moving average is $5.87 and its two-hundred day simple moving average is $7.31. Journey Medical has a 1-year low of $4.31 and a 1-year high of $9.56.

Institutional Trading of Journey Medical

Several institutional investors and hedge funds have recently added to or reduced their stakes in DERM. J. Goldman & Co LP acquired a new stake in Journey Medical during the fourth quarter valued at approximately $6,155,000. Millennium Management LLC acquired a new stake in shares of Journey Medical during the fourth quarter worth approximately $3,530,000. Ikarian Capital LLC acquired a new stake in shares of Journey Medical during the fourth quarter worth approximately $1,939,000. Wasatch Advisors LP lifted its stake in Journey Medical by 23.8% in the second quarter. Wasatch Advisors LP now owns 1,152,059 shares of the company’s stock valued at $8,272,000 after acquiring an additional 221,456 shares during the last quarter. Finally, Geode Capital Management LLC lifted its stake in Journey Medical by 130.7% in the second quarter. Geode Capital Management LLC now owns 262,353 shares of the company’s stock valued at $1,884,000 after acquiring an additional 148,612 shares during the last quarter. 7.25% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Several brokerages recently weighed in on DERM. Weiss Ratings reiterated a “sell (d-)” rating on shares of Journey Medical in a research report on Monday, April 20th. HC Wainwright reiterated a “buy” rating and issued a $13.00 price objective on shares of Journey Medical in a research report on Thursday, March 26th. Three research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock has an average rating of “Hold” and an average target price of $13.00.

About Journey Medical

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.