$OPK Q2 will be good (profitable), but Q3 will be incredible!!!
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SWICH
Bullish
now
@Stoxagem do you think the CV testing will cover them sufficiently t make up for the drop off in their other diagnostic services, which must have declined significantly during the lock down?
@SWICH the analysts EPS estimates for Q2 and full year are still negative. Once BRL gets a better sense of the testing run rate expect this to trigger analyst upgrades prior to Q2 earnings. Q2-19 was negative $0.10 EPS and Q2-20 analysts estimates are negative $0.08 EPS. Even if slightly negative this would be a huge catalyst vs. expectations, particularly in the midst of most companies will be reporting not just bad, but significantly poor earnings for Q2. The base business will be significantly impacted, but the PCR and Serology testing should more than offset. So bottom line the Q2 and full-year EPS expectations are extremely low. I expect Q3 and Q4 to definitely be positive EPS as BRL will at scale and bulk of base business will return. Q2 is the transitioning time frame, so we shall see where that actually lands. Full-year outlook very good!
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