TherapeuticsMD Inc.: Up 100% Since Reporting Strong Q2 Results, Raises Guidance

TherapeuticsMD Inc Up 100% Since August, Builds On Strong Q2 Results
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TherapeuticsMD Inc Surprises Wall Street With Solid Q2 Results

TherapeuticsMD Inc (NASDAQ:TXMD) had been trending steadily lower since reporting less-than-enthralling first-quarter financial results in May.

But patient investors were rewarded in August when the company surprised Wall Street by reporting strong second-quarter results and raising its full-year guidance. Since then, the company’s share price has doubled.

Trading at $3.74 at the time of this writing, TXMD stock remains bullish and continues to build on earlier gains. Analysts have changed their tune on TherapeuticsMD stock, with a 12-month price forecast of $20.00 per share. This represents about a 439% increase from the current price.

TXMD Stock Overview

Based in Boca Raton, Florida, TherapeuticsMD Inc is a tech company working in the healthcare sector. The pharmaceutical penny stock develops Food and Drug Administration (FDA)-approved women’s healthcare products including “Annovera,” “Bijuva,” and “Imvexxy.” (Source: “About Us,” TherapeuticsMD Inc, last accessed October 17, 2019.)

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TherapeuticsMD also runs BocaGreenMD, which develops generic prescription and nutritional healthcare products for women, and vitaMedMD, which provides prescription prenatal vitamins.

The company has a number of hormone therapy drugs in various stages of development.

TXMD Stock Information

Market Cap $902.1 Million
52-Week Change -32.7%
52-Week High $6.09
52-Week Low $1.82
Shares Outstanding 241.2 Million
Float 198.7 Million
50-Day Moving Average $3.53
200-Day Moving Average $3.25

(Source: “TherapeuticsMD, Inc. (TXMD),” Yahoo! Finance, last accessed October 18, 2019.)

TherapeuticsMD stock followed the broader market downward in the fourth quarter of 2018. Then the stock rebounded in the early months of 2019, fueled by the “January Effect” on steroids.

That came to an end after the company reported disappointing first-quarter results on May 6. Over the next three months, its share price tumbled, hitting a six-year low of $1.82 on August 6, the same day it reported strong second-quarter results.

Since then, TXMD stock has risen by about 100% and continues to have excellent momentum.


Chart courtesy of StockCharts.com

Second-Quarter Revenue Up 41%, Billings Grew 47%

On August 6, TherapeuticsMD announced that its revenue for the second quarter increased 62% year-over-year to $6.1 million. That topped the company’s previous guidance. (Source: “TherapeuticsMD Announces Second Quarter 2019 Financial Results,” TherapeuticsMD Inc, August 6, 2019.)

The company reported a second-quarter net loss of $55.2 million ($0.23 per share), compared to a net loss of $33.2 million ($0.15 per share) in the same period last year.

TherapeuticsMD Inc finished the second quarter with $182.8 million cash, compared to $161.6 million at the end of 2018. The company has a total outstanding debt of $194.1 million.

Thanks to the solid second-quarter results that were above expectations, management raised its guidance, saying “the next few quarters will be transformative.”

Q3 revenue is forecast to be in the range of $6.8 to $9.0 million, up from the previous guidance of $6.3 to $8.8 million.

Q4 revenue is forecast to be in the range of $12.8 to $15.3 million, up from the previous guidance of $12.5 to $15.0 million.

Full-year 2019 revenue is forecast to be in the range of $29.5 to $34.2 million, up from the previous guidance of $27.1 to $33.1 million.

Analyst Take

TherapeuticsMD stock had a tough year until the company reported solid second-quarter results that came in higher than expectations and upped its guidance for the second half of 2019.

By the end of this year, the company plans to conduct pre-launch activities for Annovera, expand market access for its menopause product portfolio, and increase its sales of Imvexxy and Bijuva.

TherapeuticsMD Inc has terrific momentum, and its developments in the next few quarters should help it build on its recent gains.