Dendreon Earnings Look Difficult in Apples-to-Apples Analysis (DNDN)

Dendreon Corporation (NASDAQ: DNDN) is out with earnings and it is not going to be easy to tally for the quarter on an apples-to-apples basis.  Net income in the fourth quarter of 2011 was $38.1 million, or $0.26 per share.  This is up from a net loss of $91.8 million for the same period in 2010. The fourth quarter results included a royalty payment of $125 million associated with the sale of its VICTRELIS royalty interest.  Product revenue for the fourth quarter of 2011 was $77 million.

Thomson Reuters had estimates of -$0.23 EPS and $120.8 million in revenue.  Shares were back to $14.86 and that was above the mean consensus target of $12.82 from analysts but still down less than half from its 52-week high and up over 100% from its 52-week low. 

This is all about the adoption of PROVENGE from doctors and it is expected to be getting back on track.  Watch guidance closely.  2102 estimates are -$1.61 EPS on $392.6 million in sales.

Dendreon ended the last quarter with about $617.7 million in cash, cash equivalents, and short-term and long-term investments versus $277.3 million a year earlier.

We have not yet seen guidance so consider this an incomplete report at this time.

The stock is trading up 2.2% at $15.24 in the pre-market but it looks as though shares have changed between positive and negative after the report.