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Why Is Esperion Therapeutics (ESPR) Up 51.4% Since Last Earnings Report?

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A month has gone by since the last earnings report for Esperion Therapeutics (ESPR - Free Report) . Shares have added about 51.4% in that time frame, outperforming the S&P 500.

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

Esperion Q3 Earnings & Revenues Beat Estimates

Esperion incurred a loss of 37 cents per share in the third quarter of 2023, narrower than the Zacks Consensus Estimate of a loss of 42 cents. The company incurred a loss of 81 cents per share in the year-ago quarter.

Esperion generated revenues of $34.0 million, up 79% year over year. The reported figure beat the Zacks Consensus Estimate of $30.8 million.

Quarter in Detail

Esperion has two FDA-approved drugs — Nexletol and Nexlizet — in its commercial portfolio. The company records royalties on sales of its drugs in Europe and other ex-U.S. markets.

Product revenues, solely from the United States, totaled $20.3 million in the third quarter, up 45% year over year. The upside was driven by continued prescription growth. During the quarter, the drugs’ retail prescription grew 33% year over year and 8% quarter over quarter.

The reported product revenues missed the Zacks Consensus Estimate and our model estimate of $23.5 million and $22.5 million, respectively.

Esperion recorded collaboration revenues, which include combined royalty and partner revenues, of $13.7 million during the reported quarter, up 174% year over year. The upside can be attributed to increased royalty revenue and tablet shipments to international partners.

Collaboration revenues beat the Zacks Consensus Estimate and our model estimate of $6.6 million and $7.1 million, respectively.

Research and development (R&D) expenses declined 49% from the year-ago period’s level to $14.9 million, primarily related to the close-out of the company’s CLEAR Outcomes study.

Selling, general and administrative (SG&A) expenses were up 33% year over year to $33.2 million, thanks to higher legal and promotional costs.

As of Sep 30, 2023, Esperion had cash, cash equivalents, restricted cash and investment securities of $114.8 million compared with $138.5 million as of Jun 30, 2023.

2023 Guidance

Esperion reiterated its financial outlook for 2023. The company still expects operating expenses in the range of $225-$245 million, including $25 million in non-cash expenses related to stock compensation. Guidance for total operating expenses includes $100-$110 million in R&D expenses and $125-$135 million in SG&A expenses.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in fresh estimates.

The consensus estimate has shifted -29.42% due to these changes.

VGM Scores

At this time, Esperion Therapeutics has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the fifth 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 downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Esperion 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

Esperion Therapeutics belongs to the Zacks Medical - Drugs industry. Another stock from the same industry, ImmunoGen , has gained 86.4% over the past month. More than a month has passed since the company reported results for the quarter ended September 2023.

ImmunoGen reported revenues of $113.43 million in the last reported quarter, representing a year-over-year change of +637.5%. EPS of $0.10 for the same period compares with -$0.31 a year ago.

For the current quarter, ImmunoGen is expected to post earnings of $0.12 per share, indicating a change of +152.2% from the year-ago quarter. The Zacks Consensus Estimate has changed +30.4% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for ImmunoGen. Also, the stock has a VGM Score of D.


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