A month has gone by since the last earnings report for Aerie Pharmaceuticals . Shares have added about 19% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Aerie due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Aerie Q3 Loss Narrower Than Expected, Sales Rise Y/Y
Aerie reported a loss of 65 cents per share in third-quarter 2020, narrower than the Zacks Consensus Estimate of a loss of 81 cents. The loss in the year-ago quarter was 86 cents per share.
Revenues came in at $20.1 million, which increased from $18.5 million in the year-ago quarter and beat the Zacks Consensus Estimate of $19 million.
Total revenues came from sales of two approved drugs —Rhopressa and Rocklatan.
The company’s first drug, Rhopressa (netarsudil ophthalmic solution), has been approved for the reduction of elevated intraocular pressure (IOP) in patients with open-angle glaucoma or ocular hypertension. Aerie’s second drug, Rocklatan, a once-daily, quadruple-action, fixed-dose combination of Rhopressaand Xalatan, has been approved to reduce elevated IOP in patients with open-angle glaucoma or ocular hypertension.
Quarter in Detail
Wholesaler shipments totaled 261,000 bottles,more than 12% higher than 232,500 bottles in the second quarter of 2020.
Total operating expenses (excluding stock-based compensation expenses) in the quarter were $39 million, down from the year-ago quarter’s $49.2 million.
Pipeline Update
Aerie and Santen entered into an exclusive license agreement for the development and commercialization of Rhopressa and Rocklatan in Japan and several other Asian countries. The agreement includes an upfront payment of $50 million to Aerie. Aerie expects to initiate the first phase III study in Japan for Rhopressa by the end of 2020.
The company expects an opinion from the European Medicines Agency’s (EMA) Committee for Medicinal Products for Human Use on the marketing authorization application (MAA) for Roclanda (netarsudil and latanoprost ophthalmic solution) 0.02%/0.005% (marketed as Rocklatanin the United States) in the fourth quarter of 2020.
Aerie reported positive top-line data from the Rocklatan Mercury 3 phase III study in Europe in September 2020. Rocklatan (known as Roclanda in Europe) achieved non-inferiority to a fixed-dose combination in Europe (Ganfort) and received early interest from potential collaborators.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month. The consensus estimate has shifted 6.74% due to these changes.
VGM Scores
Currently, Aerie has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Aerie has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Aerie (AERI) Up 19% Since Last Earnings Report?
A month has gone by since the last earnings report for Aerie Pharmaceuticals . Shares have added about 19% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Aerie due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Aerie Q3 Loss Narrower Than Expected, Sales Rise Y/Y
Aerie reported a loss of 65 cents per share in third-quarter 2020, narrower than the Zacks Consensus Estimate of a loss of 81 cents. The loss in the year-ago quarter was 86 cents per share.
Revenues came in at $20.1 million, which increased from $18.5 million in the year-ago quarter and beat the Zacks Consensus Estimate of $19 million.
Total revenues came from sales of two approved drugs —Rhopressa and Rocklatan.
The company’s first drug, Rhopressa (netarsudil ophthalmic solution), has been approved for the reduction of elevated intraocular pressure (IOP) in patients with open-angle glaucoma or ocular hypertension. Aerie’s second drug, Rocklatan, a once-daily, quadruple-action, fixed-dose combination of Rhopressaand Xalatan, has been approved to reduce elevated IOP in patients with open-angle glaucoma or ocular hypertension.
Quarter in Detail
Wholesaler shipments totaled 261,000 bottles,more than 12% higher than 232,500 bottles in the second quarter of 2020.
Total operating expenses (excluding stock-based compensation expenses) in the quarter were $39 million, down from the year-ago quarter’s $49.2 million.
Pipeline Update
Aerie and Santen entered into an exclusive license agreement for the development and commercialization of Rhopressa and Rocklatan in Japan and several other Asian countries. The agreement includes an upfront payment of $50 million to Aerie. Aerie expects to initiate the first phase III study in Japan for Rhopressa by the end of 2020.
The company expects an opinion from the European Medicines Agency’s (EMA) Committee for Medicinal Products for Human Use on the marketing authorization application (MAA) for Roclanda (netarsudil and latanoprost ophthalmic solution) 0.02%/0.005% (marketed as Rocklatanin the United States) in the fourth quarter of 2020.
Aerie reported positive top-line data from the Rocklatan Mercury 3 phase III study in Europe in September 2020. Rocklatan (known as Roclanda in Europe) achieved non-inferiority to a fixed-dose combination in Europe (Ganfort) and received early interest from potential collaborators.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month. The consensus estimate has shifted 6.74% due to these changes.
VGM Scores
Currently, Aerie has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Aerie has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.