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Amphastar (AMPH) to Report Q2 Earnings: What's in the Cards?

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We expect the investors to focus on Amphastar Pharmaceuticals’ (AMPH - Free Report) product sales numbers when the company reports its second-quarter 2023 financial performance next month.

Amphastar’s high-margin products, such as Glucagon, Primatene Mist, Epinephrine and Lidocaine, are the major contributors to its top line, which accounted for about 59% of the company’s total net revenues in the first quarter of 2023. 

AMPH’s earnings surpassed expectations in each of the trailing four quarters, delivering an average earnings surprise of 33.83%. In the last reported quarter, the company reported a positive earnings surprise of 37.78%.

Year to date, shares of Amphastar have skyrocketed 116.5% compared with the industry’s 30% rise.

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Let us see how things have shaped up for the quarter to be reported.

Factors to Consider

Amphastar reports its revenues under two segments — Finished Pharmaceutical Products and Active Pharmaceutical ingredients (API). The company’s second-quarter revenues are expected to have been driven by the sales of its high-margin pharmaceutical products.

Under the Finished Pharmaceutical Products segment, the company markets seven products, such as Glucagon, Primatene Mist, Epinephrine, Lidocaine, Enoxaparin, Phytonadione and Naloxone. Sales in this segment increased last quarter because of the higher sales volume of its products. This trend is expected to have continued in the to-be-reported quarter. Sales from newer products like ganirelix and vasopressin, launched in 2022, might have also contributed to the revenues generated in the second quarter.

The Zacks Consensus Estimate for revenues generated from this segment is pegged at $128.9 million for the second quarter. The increasing trend of Glucagon sales in the past few quarters is expected to have continued in the to-be-reported quarter. The Zacks Consensus Estimate for Glucagon sales in second-quarter 2023 is pegged at $26.34 million.

In the last reported quarter, favorable timing of customer purchases benefited sales in the API business segment, which is expected to have continued to make a positive impact on the top line in the second quarter. The Zacks Consensus Estimate for revenues generated from this segment is pegged at $2.8 million.

Other Updates

In June 2023, Amphastar announced completing the acquisition of Baqsimi from Eli Lilly. Baqsimi is a dry nasal spray to treat very low blood sugar in people with diabetes aged four years and above. The addition of this product to AMPH’s portfolio provides the company with a branded product with growing sales and a strong gross margin, thus strengthening its intranasal product portfolio. The transaction is also expected to expand Amphastar's international footprint in 26 countries.

Baqsimi is expected to start contributing to Amphastar’s revenues in the third quarter of 2023.

The company’s pipeline also comprises several generic and biosimilar products in review or under development that target a huge market. Successful development and launch in upcoming quarters are anticipated to boost the company’s top line.

Earnings Whisper

Our proven model does not conclusively predict an earnings beat for Amphastar this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. Unfortunately, that is not the case here, as you will see below. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Earnings ESP: Amphastar has an Earnings ESP of 0.00% as the Zacks Consensus Estimate and the Most Accurate Estimate both stand at 57 cents.

Zacks Rank: AMPH currently sports a Zacks Rank #1.

Stocks to Consider

Here are some stocks in the same industry that have the right combination of elements to beat on earnings this time around:

Axsome Therapeutics (AXSM - Free Report) has an Earnings ESP of +3.26% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Axsome’s stock has declined 4.7% year to date. Axsome beat earnings estimates in three of the last four quarters while missing the mark on one occasion. AXSM has an earnings surprise of 22.34%, on average.

Bluebird bio (BLUE - Free Report) has an Earnings ESP of +10.42% and a Zacks Rank #3.

Bluebird’s stock has declined 44.5% year to date. Bluebird beat earnings estimates in each of the last four quarters. BLUE has a four-quarter earnings surprise of 88.25%, on average.

Caribou Biosciences (CRBU - Free Report) has an Earnings ESP of +5.64% and a Zacks Rank #2.

Caribou’s stock has gained 5.9% in the year so far. Caribou beat earnings estimates in three of the last four reported quarters and missed once. CRBU has a negative earnings surprise of 1.36%, on average.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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