Diplomat Pharmacy, Inc. (DPLO) Stock | Impressive Q3 Financial Results and Raises Full Year Guidance


Diplomat Pharmacy, Inc.  (NASDAQ: DPLO)


Diplomat Pharmacy, Inc. (DPLO), an independent specialty pharmacy company on Tuesday announced positive third quarter 2015 financial results. Revenues increased 59%, Net income increased 251%, and Adjusted EBITDA increased 212% over third quarter 2014. Not only did all of these numbers increase the company, but they also raised their full year 2015 guidance.  


Diplomat Pharmacy, Inc. CEO Comments

Phil Hagerman, Chairman and CEO of Diplomat, commented

“During the third quarter, we continued to strengthen our leadership position in the specialty pharmacy industry with 59% revenue growth and 212% adjusted EBITDA growth.  In fact, the 32% growth in organic revenue was our highest organic growth quarter yet this year.  Across the entire organization, this was another very successful quarter as we saw tremendous growth in our core business, including our recent acquisitions, which are performing well ahead of our expectations.  We are incredibly excited about our industry and its growth potential. There remains a rich pipeline of drugs in development that lend themselves to the specialty pharmacy model and I’m very confident in our ability to continue to win access to limited distribution panels. In the wake of such a strong quarter, we are raising our outlook for the remainder of 2015.”  PR Newswire


DPLO Technical Analysis


DPLO gapped up in price yesterday to $32.29, up from the prior day’s close of $29.26, which is a 10% increase on the favorable news. Taking a look at the daily chart, we can see the last time DPLO traded above this price level was on September 25th, when it closed at $32.56. DPLO has been on an overall decline dating back to July 22 when it traded at $51.06. More recently, DPLO has been rallying off lows of $22.41 reached on October 22. The current rally has reversed the trend of DPLO putting in lower highs, as it surpassed the last high of $29.65 on October 19th.  DPLO has a relatively low float of 38.24 million shares and is trading almost 2 times the normal daily trading volume. DPLO did reach pre market highs of $32.88, but it gave back $0.59 at the open, or equivalent to 2%. For trading purposes, my entry point would have been $32.40 looking for a possible run to $34. My stop loss would have been $32.15, fearing anything below that and the stock would start to fill in the gap up.


Company Profile

Diplomat Pharmacy, Inc. operates as an independent specialty pharmacy in the United States. The company stocks, dispenses, and distributes prescriptions for various biotechnology and specialty pharmaceutical manufacturers. It also provides specialty infusion pharmacy, patient care coordination, clinical, compliance and persistency program, patient financial assistance, specialty pharmacy training/consulting, benefits investigation, prior authorization, risk evaluation and medication strategy, retail specialty, and hub services, as well as clinical and administrative support services to hospitals and health systems. The company’s primary focus is on medication management programs for individuals with complex chronic diseases, including oncology, immunology, hepatitis, multiple sclerosis, HIV, specialized infusion therapy, and various other serious or long-term conditions. Diplomat Pharmacy, Inc. has seven pharmacy locations in California, Connecticut, Florida, Illinois, Massachusetts, Michigan, and North Carolina. The company was founded in 1975 and is headquartered in Flint, Michigan. Yahoo Finance