REDONDO BEACH, CA--(Marketwired - Aug 18, 2016) - SECFilings.com, a leading financial news and information portal offering free real time public company filing alerts, announces publication of an article discussing Innovus Pharmaceuticals' (OTCQB: INNV) recent strong earnings growth, the path forward, and analyst reaction to the company's surge in revenues.
The company reported a robust second quarter with $1 million in revenue and positive operational cash flow of $256,000. In addition to exceeding Q2 estimates, the company issued revenue guidance of $5 million in FY16 that was well ahead of expectations for the year. SeeThruEquity analysts responded to the strong earnings and outlook by raising their price target to $1.00 per share -- a 170% premium to the current market price.
The analyst firm projects that revenues will grow from $5 million in FY16 to $14.7 million by FY17, while net income will swing from a $3.5 million loss in FY16 to a $1.6 million profit by FY17. When it comes to valuation, the firm anticipates that the stock will trade with an EV/EBITDA multiple of 14.2x and an EV/Revenue multiple of 2.2x by FY17. These estimates also reflect gross margins of just 64% by FY17 despite Q2 margins of more than 70%.
"We have exceeded our commercial expectations, and with the projected launch of Sensum+®, RecalMax™, and Xyralid® in the second half of 2016, we believe that revenues will continue to increase through the balance of 2016 and into 2017 and exceed our projections," said Innovus Pharmaceuticals President & CEO Dr. Bassam Damaj. "Becoming operationally cash flow positive from the second quarter, and ahead of the timeline projected, is a major financial achievement for the company and a big step towards our projected profitability in 2017."
To read the full article on SECFilings.com, please click here: http://analysis.secfilings.com/articles/56-innovus-pharma-innv-reaches-a-positive-cash-flow-issues-strong-outlook
Founded in 2004, SECFilings.com provides free real time filing alerts to over 600,000 registered members and offers services to help public companies grow their audience of interested investors.
Except for the historical information presented herein, matters discussed in this release contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Emerging Growth LLC, which owns SECFilings.com, is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. Emerging Growth LLC may from time to time have a position in the securities mentioned herein and may increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice. Emerging Growth LLC may be compensated for its services in the form of cash-based compensation or equity securities in the companies it writes about, or a combination of the two. For full disclosure please visit: http://secfilings.com/Disclaimer.aspx.