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Horizon Therapeutics (HZNP) Up 10.4% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for Horizon Therapeutics . Shares have added about 10.4% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Horizon Therapeutics due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Horizon Therapeutics plc delivered second-quarter 2023 adjusted earnings of $1.20 per share, which beat the Zacks Consensus Estimate of $1.12. The company reported adjusted earnings of $1.07 per share in the year-ago quarter.
Quarterly revenues of $945 million surged 8% year over year, owing mostly to the encouraging performance of its key drugs, Krystexxa, Tepezza and Uplizna, in the second quarter of 2023. Revenues surpassed the Zacks Consensus Estimate of $916 million.
Quarter in Detail
Horizon reported financial results in a single segment owing to the wind-down of the inflammation business beginning in the fourth quarter of 2022.
In the unified segment, Tepezza sales accounted for 47% of the net sales, amounting to $445.5 million, which missed the Zacks Consensus Estimate of $537.5 million in the reported quarter, representing a 7% year-over-year decline. However, the second quarter of 2023 witnessed a 10% sequential increase in revenues generated from Tepezza sales.
Krystexxa sales, the key growth driver for the reported quarter, rose 46% year over year to $244 million, surpassing the Zacks Consensus Estimate of $238 million. The phenomenal performance of the drug was driven by Horizon’s efforts for demand generation, stakeholder education and treatment adherence.
Ravicti sales were $88.4 million in the quarter, up 17% year over year, but missed the Zacks Consensus Estimate of $91.9 million.
Uplizna sales were $68.1 million in the quarter, up 76% year over year, beating the Zacks Consensus Estimate of $52.9 million. The staggering performance of the drug was reportedly driven by strong commercial execution related to demand generation and new patient starts, education of existing prescribers and strong adherence to maintenance treatment. The company is currently planning multiple international launches of Uplizna in 2023.
Procysbi sales were $53.1 million in the quarter, up 11% year over year, missing the Zacks Consensus Estimate of $59 million.
Actimmune sales were $29 million in the quarter, down 3% year over year, missing the Zacks Consensus Estimate of $33.2 million.
Adjusted research and development expenses were $139.8 million, up 47% from the year-ago quarter. Adjusted selling, general and administrative expenses were $361 million, up 2.5% from the year-ago quarter.
The company had cash, cash equivalents and investments worth $2.46 billion as of Jun 30, 2023, compared with $2.31 billion as of Mar 31, 2023.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -6.78% due to these changes.
VGM Scores
At this time, Horizon Therapeutics 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 C on the value side, putting it in the middle 20% 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 downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Horizon Therapeutics has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Horizon Therapeutics is part of the Zacks Medical - Biomedical and Genetics industry. Over the past month, Ultragenyx (RARE - Free Report) , a stock from the same industry, has gained 5.3%. The company reported its results for the quarter ended June 2023 more than a month ago.
Ultragenyx reported revenues of $108.31 million in the last reported quarter, representing a year-over-year change of +21.2%. EPS of -$2.25 for the same period compares with -$2.26 a year ago.
Ultragenyx is expected to post a loss of $2.05 per share for the current quarter, representing a year-over-year change of +15.6%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.4%.
Ultragenyx has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.
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Horizon Therapeutics (HZNP) Up 10.4% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Horizon Therapeutics . Shares have added about 10.4% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Horizon Therapeutics due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Horizon Q2 Earnings Top, Krystexxa & Uplizna Boost Sales
Horizon Therapeutics plc delivered second-quarter 2023 adjusted earnings of $1.20 per share, which beat the Zacks Consensus Estimate of $1.12. The company reported adjusted earnings of $1.07 per share in the year-ago quarter.
Quarterly revenues of $945 million surged 8% year over year, owing mostly to the encouraging performance of its key drugs, Krystexxa, Tepezza and Uplizna, in the second quarter of 2023. Revenues surpassed the Zacks Consensus Estimate of $916 million.
Quarter in Detail
Horizon reported financial results in a single segment owing to the wind-down of the inflammation business beginning in the fourth quarter of 2022.
In the unified segment, Tepezza sales accounted for 47% of the net sales, amounting to $445.5 million, which missed the Zacks Consensus Estimate of $537.5 million in the reported quarter, representing a 7% year-over-year decline. However, the second quarter of 2023 witnessed a 10% sequential increase in revenues generated from Tepezza sales.
Krystexxa sales, the key growth driver for the reported quarter, rose 46% year over year to $244 million, surpassing the Zacks Consensus Estimate of $238 million. The phenomenal performance of the drug was driven by Horizon’s efforts for demand generation, stakeholder education and treatment adherence.
Ravicti sales were $88.4 million in the quarter, up 17% year over year, but missed the Zacks Consensus Estimate of $91.9 million.
Uplizna sales were $68.1 million in the quarter, up 76% year over year, beating the Zacks Consensus Estimate of $52.9 million. The staggering performance of the drug was reportedly driven by strong commercial execution related to demand generation and new patient starts, education of existing prescribers and strong adherence to maintenance treatment. The company is currently planning multiple international launches of Uplizna in 2023.
Procysbi sales were $53.1 million in the quarter, up 11% year over year, missing the Zacks Consensus Estimate of $59 million.
Actimmune sales were $29 million in the quarter, down 3% year over year, missing the Zacks Consensus Estimate of $33.2 million.
Adjusted research and development expenses were $139.8 million, up 47% from the year-ago quarter. Adjusted selling, general and administrative expenses were $361 million, up 2.5% from the year-ago quarter.
The company had cash, cash equivalents and investments worth $2.46 billion as of Jun 30, 2023, compared with $2.31 billion as of Mar 31, 2023.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -6.78% due to these changes.
VGM Scores
At this time, Horizon Therapeutics 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 C on the value side, putting it in the middle 20% 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 downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Horizon Therapeutics has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Horizon Therapeutics is part of the Zacks Medical - Biomedical and Genetics industry. Over the past month, Ultragenyx (RARE - Free Report) , a stock from the same industry, has gained 5.3%. The company reported its results for the quarter ended June 2023 more than a month ago.
Ultragenyx reported revenues of $108.31 million in the last reported quarter, representing a year-over-year change of +21.2%. EPS of -$2.25 for the same period compares with -$2.26 a year ago.
Ultragenyx is expected to post a loss of $2.05 per share for the current quarter, representing a year-over-year change of +15.6%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.4%.
Ultragenyx has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.