XOMA Corp (NASDAQ:XOMA) is going down if you are looking at the shares now. But there is much more to the company than the string of bad news around it. What is going on around XOMA is that investors are doing what they usually do when a stock reports below expectations. Also, the company has just announced the discontinuation of late-stage trial of its drug gevokizumab for the treatment of arthritis of the hand.
These reports combined make really bad news for investors. Yet, the stock could also be slipping into a discounted position for investors who are able to see opportunities beyond the current troubles. Perhaps for now XOMA Corp (NASDAQ:XOMA) may not be a thing for the fainthearted, but it is not past its best yet.
Now that the fearful investors are heading for the exit door in XOMA Corp (NASDAQ:XOMA), it is important to look at how the company has performed in the most recent quarter and how it is plotting its future.
Most recent quarter performance
XOMA Corp (NASDAQ:XOMA) has announced that it suffered a loss of $0.18 per share, less than the loss of $0.19 that analysts at Zacks estimated, but winder that $0.15 loss it reported in a year ago quarter. Revenue in the quarter in review was better than what Zacks expects and it’s a year ago revenue. Thus revenue came in at $12.5 million, beating $9 million Zacks estimate and 69.6 percent above fourth quarter revenue in the previous year.
The fourth quarter revenue was hurt by high spending on research and development. Spending in this column was $22.9 million, up more than 45 percent from what was spent in corresponding quarter of the previous year.
XOMA Corp (NASDAQ:XOMA) ended its fiscal 2013 full-year with loss of $0.72 per share. That was less than loss of $0.88 per share that was suffered last year, and $1.04 per share loss as estimated by Zacks. Revenue for the year was $35.5 million, exceeding 2012 revenue by 4.9 percent and coming ahead of $31 million estimated by Zacks.
What next for XOMA?
XOMA Corp (NASDAQ:XOMA) is not going to let the setback suffered due to loss in the financial performance and lack of positive results from gevokizumab in treatment of arthritis of the hand spoil its party. The company is looking ahead and hopes that gevokizumab can still turn out to be a great performer in hand erosive osteoarthritis as well as in some eye and skin diseases. So then, it may not be the best time to press the panic button.