Back to top

Image: Bigstock

Why Is Pacira (PCRX) Up 2.1% Since Last Earnings Report?

Read MoreHide Full Article

It has been about a month since the last earnings report for Pacira (PCRX - Free Report) . Shares have added about 2.1% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Pacira 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 catalysts.

Pacira's Q1 Earnings Miss Estimates, Revenues Rise Y/Y

Pacira reported first-quarter 2022 adjusted earnings of 64 cents per share, missing the Zacks Consensus Estimate of 74 cents. The company had reported adjusted earnings of 53 cents per share in the year-ago quarter.

Total revenues increased 33% to $158 million in the first quarter of 2022 from the year-earlier figure of $119 million, owing to a continuous strong uptake of Exparel. The top line, however, beat the Zacks Consensus Estimate of $157 million.

Quarter in Detail

Pacira’s top line mainly comprises product revenues, other product sales and royalty revenues.

Exparel net product sales were $129.2 million, up 12.6% from $114.7 million generated in the year-ago quarter. However, sale of the drug decreased 7.6% on a sequential basis.

Exparel/bupivacaine liposome injectable suspension sales came in at $1.6 million in the reported quarter compared with $0.8 million in the year-ago quarter.

Iovera system generated sales worth $3 million in the first quarter of 2022, reflecting a sequential decrease of 38.8% and a 9.1% year-over-year decline as well.

Net product sales from Zilretta were $23.6 million in 2022.

Royalty revenues came in at $0.6 million in the reported quarter compared with $0.3 million in the year-ago period.

Research and development (R&D) expenses (excluding stock-based compensation) increased 36.4% to $20.1 million.

Selling, general and administrative (SG&A) expenses (excluding stock-based compensation) increased 36.4% year over year to $55.9 million in the reported quarter.

2022 Outlook

Pacira is not providing guidance for 2022 due to the COVID-19 pandemic still negatively impacting sales. As a result, it is reporting monthly intra-quarter unaudited net product sales until it gains enough visibility around the impacts of COVID-19.

For 2022, adjusted R&D expenses are expected in the range of $75-$85 million, while adjusted SG&A expenses are anticipated in the band of $220-$230 million – both unchanged from the previous guidance.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision have trended downward during the past month.

VGM Scores

At this time, Pacira has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Pacira has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Pacira BioSciences, Inc. (PCRX) - free report >>

Published in