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Alkermes (ALKS) Down 0.2% Since Last Earnings Report: Can It Rebound?
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It has been about a month since the last earnings report for Alkermes (ALKS - Free Report) . Shares have lost about 0.2% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Alkermes due for a breakout? 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.
Alkermes' Q2 Earnings Miss Estimates, Revenues Beat
Alkermes reported adjusted earnings from continuing operations of 72 cents per share for second-quarter 2024, which missed the Zacks Consensus Estimate of 73 cents. The company had reported adjusted earnings of 78 cents per share in the year-ago quarter.
The company’s total revenues of $399.1 million declined 35.3% from the year-ago quarter’s level owing to decreased manufacturing and royalty revenues. The top line, however, beat the Zacks Consensus Estimate of $394 million.
Quarter in Detail
Alkermes derives revenues from the net sales of its proprietary products — Vivitrol (alcohol and opioid dependence), Aristada (schizophrenia) and Lybalvi (schizophrenia and bipolar I disorder) — and manufacturing and/or royalty revenues on net sales of products commercialized by its partners.
Sales of the proprietary products portfolio grew 16% year over year during the second quarter.
Sales of the proprietary drug, Vivitrol, increased almost 10% year over year to $111.9 million due to stability in the alcohol dependence indication. The figure beat the Zacks Consensus Estimate of $108 million as well as our model estimate of $110.7 million.
Aristada sales increased 4.4% year over year to $86 million due to increased new-to-brand prescriptions growth during the quarter. The figure was in line with the Zacks Consensus Estimate while slightly missing our model estimate of $86.5 million.
Lybalvi generated sales of $71.4 million, up almost 52% year over year, primarily driven by growth in underlying demand. Lybalvi's sales beat the Zacks Consensus Estimate of $67 million as well as our model estimate of $65 million.
Total manufacturing and royalty revenues decreased 66.4% year over year to $129.8 million, owing to decreased revenues from long-acting Invega products.
Manufacturing and royalty revenues from Biogen’s multiple sclerosis drug, Vumerity, were up almost 9% year over year to $35.2 million. Royalty revenues from Invega products were $78.7 million in the second quarter compared with $321.2 million reported in the year-ago quarter.
Research and development expenses totaled $59.6 million, down almost 12.6% year over year, reflecting investments in the pipeline development program related to ALKS 2680.
Selling, general and administrative expenses totaled $168.1 million, down 14.1% year over year. The decrease was primarily driven by operational efficiencies and some non-recurring expenses that were recorded in the year-ago quarter.
As of Jun 30, 2024, Alkermes had cash and cash equivalents of $962.5 million compared with $807.8 million as of Mar 31, 2024.
2024 Guidance
Alkermes reiterated the revenue guidance it provided earlier this year.
The company continues to expect total revenues in the band of $1.5-$1.6 billion for 2024.
Net sales for Vivitrol are expected to be in the range of $410-$430 million. Aristada sales are anticipated in the $340-$360 million band. Lybalvi’s net sales are expected in the $275-$295 million range.
Research and development expenses are anticipated in the band of $225-$255 million. Selling, general and administrative expenses are projected in the range of $625-$655 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates review flatlined during the past month.
The consensus estimate has shifted 9.46% due to these changes.
VGM Scores
Currently, Alkermes has a strong Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Charting a somewhat similar path, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Alkermes has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Alkermes (ALKS) Down 0.2% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Alkermes (ALKS - Free Report) . Shares have lost about 0.2% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Alkermes due for a breakout? 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.
Alkermes' Q2 Earnings Miss Estimates, Revenues Beat
Alkermes reported adjusted earnings from continuing operations of 72 cents per share for second-quarter 2024, which missed the Zacks Consensus Estimate of 73 cents. The company had reported adjusted earnings of 78 cents per share in the year-ago quarter.
The company’s total revenues of $399.1 million declined 35.3% from the year-ago quarter’s level owing to decreased manufacturing and royalty revenues. The top line, however, beat the Zacks Consensus Estimate of $394 million.
Quarter in Detail
Alkermes derives revenues from the net sales of its proprietary products — Vivitrol (alcohol and opioid dependence), Aristada (schizophrenia) and Lybalvi (schizophrenia and bipolar I disorder) — and manufacturing and/or royalty revenues on net sales of products commercialized by its partners.
Sales of the proprietary products portfolio grew 16% year over year during the second quarter.
Sales of the proprietary drug, Vivitrol, increased almost 10% year over year to $111.9 million due to stability in the alcohol dependence indication. The figure beat the Zacks Consensus Estimate of $108 million as well as our model estimate of $110.7 million.
Aristada sales increased 4.4% year over year to $86 million due to increased new-to-brand prescriptions growth during the quarter. The figure was in line with the Zacks Consensus Estimate while slightly missing our model estimate of $86.5 million.
Lybalvi generated sales of $71.4 million, up almost 52% year over year, primarily driven by growth in underlying demand. Lybalvi's sales beat the Zacks Consensus Estimate of $67 million as well as our model estimate of $65 million.
Total manufacturing and royalty revenues decreased 66.4% year over year to $129.8 million, owing to decreased revenues from long-acting Invega products.
Manufacturing and royalty revenues from Biogen’s multiple sclerosis drug, Vumerity, were up almost 9% year over year to $35.2 million. Royalty revenues from Invega products were $78.7 million in the second quarter compared with $321.2 million reported in the year-ago quarter.
Research and development expenses totaled $59.6 million, down almost 12.6% year over year, reflecting investments in the pipeline development program related to ALKS 2680.
Selling, general and administrative expenses totaled $168.1 million, down 14.1% year over year. The decrease was primarily driven by operational efficiencies and some non-recurring expenses that were recorded in the year-ago quarter.
As of Jun 30, 2024, Alkermes had cash and cash equivalents of $962.5 million compared with $807.8 million as of Mar 31, 2024.
2024 Guidance
Alkermes reiterated the revenue guidance it provided earlier this year.
The company continues to expect total revenues in the band of $1.5-$1.6 billion for 2024.
Net sales for Vivitrol are expected to be in the range of $410-$430 million. Aristada sales are anticipated in the $340-$360 million band. Lybalvi’s net sales are expected in the $275-$295 million range.
Research and development expenses are anticipated in the band of $225-$255 million. Selling, general and administrative expenses are projected in the range of $625-$655 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates review flatlined during the past month.
The consensus estimate has shifted 9.46% due to these changes.
VGM Scores
Currently, Alkermes has a strong Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Charting a somewhat similar path, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Alkermes has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.