Hikma loses shine in 2019

With Hikma Pharmaceutical's (HIK) shares up more than 80 per cent over the past 12 months, it’s natural to wonder how much further the stock has to travel. But if the negative market reaction on results day is any indication, it seems investors aren’t willing to accept even the slightest disappointment. Adjusted EPS of 138¢ (104p) beat consensus estimates by 2 per cent, but revenues of $2.1bn fell short of expectations, while adjusted operating profits of $460m missed Peel Hunt’s forecast by 2 per cent following higher operational expenses, including impairments. Hardly disastrous, but given the share price trajectory, you wonder if the risk now is heavily weighted to the downside.