NEW YORK (TheStreet) -- Shares of Depomed (DEPO) were falling 16.1% to $20.47 on heavy trading volume Tuesday after the drug manufacturer missed analysts' estimates for earnings and revenue in the first quarter.
Depomed reported a loss of 13 cents a share for the first quarter, below analysts' estimates of a profit of 1 cent a share. Revenue fell 57.9% year over year to $32.2 million for the quarter, below analysts' estimates of $33.76 million.
"Depomed is in a period of tremendous growth, on track to become one of the top five companies selling branded pain pharmaceuticals in the U.S. by 2016," President and CEO Jim Schoeneck said. "The products we have acquired over the past three years continue to perform exceptionally well."
About 3.2 million shares of Depomed were traded by 10:26 a.m. Tuesday, above the company's average trading volume of about 1.6 million shares a day.
TheStreet Ratings team rates DEPOMED INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate DEPOMED INC (DEPO) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, notable return on equity, attractive valuation levels and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."