- Veru(VERU) stock is rising with the release of its fiscal Q3 earnings report.
- That's despite earnings per share and revenue missing estimates.
- Instead, Covid-19 news in the report is sending shares higher.
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Veru(NASDAQ:VERU) stock is heading higher on Thursday as investors celebrate positive news in its earnings report for the fiscal third quarter of 2022.
However, it’s not the earnings report that is positive. The company’searnings per share of -28 centsfailed to beat the-16 cents per sharethat Wall Street was expecting. It’s also worse than the -3 cents per share reported in the same period of the year prior.
To go along with that, revenue came in at $9.6 million. Yet again, that’s below analysts’ estimate of $16.67 million for the quarter. It’s also a 46% drop from the $17.7 million reported during the same time last year.
Why Is VERU Stock Rising?
While earnings disappoint, there’s more to the report than just that. The company highlighted the submission of its Emergency Use Authorization (EUA) of its Covid-19 treatment to the U.S. Food and Drug Administration (FDA).
Mitchell Steiner, M.D., chairman, president and CEO of Veru, said the following about this in the earnings report.
“We expect to have significant near-term revenue from sabizabulin for the treatment of hospitalized COVID-19 patients at high risk for ARDS, if the EUA is granted by the U.S. FDA.”
Trading of VERU stock is heavy today with extra activity on the EUA news. This has some 36 million shares changing hands as of this writing. For comparison, the company’s daily average trading volume is closer to 11.3 million shares.
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