Bentley stock lags good news

Bentley Pharmaceuticals released its year-end earnings last Thursday and net income shot up last week, yet its stock took a nosedive. What’s going on?

According to the balance sheet, everything seems rosy with the Exeter-based pharmaceutical company, which specializes in generic drugs and alternative delivery systems, particularly in the European market.

Last year’s revenues of $97.7 million were up by a third and net income nearly doubled to $10.9 million or 48 cents a diluted share. The final quarter was not quite as strong, but the company saw revenues grow 29 percent to $25.2 million and net income of $3.7 million, up from $2 million for the same quarter last year.

In addition, the company had some $32 million in cash – with no long-term debt — and seems particularly successful at increasing it customer base outside of Spain, where its major subsidiary is located.

But on March 9, the day after the news was released, Bentley’s stock fell $2.44 or 14 percent to $14.90.

An Associated Press story blamed an analysts’ report from Raymond James, complaining that the company used in its earnings, making them seem higher than they actually were. Calls to Bentley were not returned by deadline. – BOB SANDERS