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’s earnings per share of -28 cents failed to beat the -16 cents per share that 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.
VERU stock is up 36% as of Thursday morning.
Investors seeking more recent stock market news will want to stick around!
InvestorPlace is home to all of the latest stock news for Thursday! Among that is what’s going on with Esports Entertainment Group (NASDAQ:GMBL), Matterport (NASDAQ:MTTR), and Disney (NYSE:DIS) shares today. You can find out all about these topics at the following links!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.