Knight Therapeutics Inc. (PNK:KHTRF) Earnings Report Highlights

• Earnings Per Share (EPS) of $0.013 exceeded the estimated EPS of $0.003.
• Actual revenue of approximately $61.1 million fell short of the estimated $87.7 million.
• The company reported a gross margin of $34.9 million, representing 40% of revenues.

Knight Therapeutics Inc. (PNK:KHTRF) is a pan-American specialty pharmaceutical company that focuses on developing and commercializing innovative pharmaceutical products. On May 8, 2025, KHTRF reported its earnings before the market opened, revealing an earnings per share (EPS) of $0.013, which exceeded the estimated EPS of $0.003. However, the company's actual revenue of approximately $61.1 million fell short of the estimated $87.7 million.

In the first quarter of 2025, Knight Therapeutics experienced a 2% increase in revenues, reaching $88 million compared to the same period last year. This growth was driven by the success of key promoted products and recent launches. However, declines in mature products and currency depreciation in certain Latin American markets partially offset this growth, as highlighted by the company's financial results.

The gross margin for the quarter was $34.9 million, representing 40% of revenues, a decrease from the previous year's 48% margin. This decline was primarily due to the effects of hyperinflation accounting in Argentina. Additionally, Knight Therapeutics reported an operating loss of $5.5 million, contrasting with an operating income of $2.7 million in the same period last year.

KHTRF's financial metrics reveal a high valuation relative to its earnings, with a price-to-earnings (P/E) ratio of approximately 139.21. The price-to-sales ratio stands at about 1.66, indicating that investors are willing to pay $1.66 for every dollar of sales. The enterprise value to sales ratio is around 1.58, reflecting the company's valuation in relation to its revenue.

The company's financial health is further supported by a low debt-to-equity ratio of 0.062, suggesting a conservative approach to leveraging. Additionally, the current ratio of 3.57 indicates strong liquidity, demonstrating the company's ability to cover short-term liabilities with its current assets.