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United Therapeutics (UTHR) Up 9.9% Since Last Earnings Report: Can It Continue?

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It has been about a month since the last earnings report for United Therapeutics (UTHR - Free Report) . Shares have added about 9.9% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is United 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 its most recent earnings report in order to get a better handle on the important drivers.

Q2 Earnings Lag, Sales Top Estimates

United Therapeutics’ second-quarter 2024 earnings of $5.85 per share missed the Zacks Consensus Estimate of $6.33. Earnings rose 12% year over year on the back of higher product sales.

Revenues were $714.9 million, beating the Zacks Consensus Estimate of $683.0 million. Revenues rose 20% year over year, driven by significant growth of all key products — Tyvaso, Orenitram, Remodulin and Unituxin.

Quarter in Detail

Tyvaso DPI recorded sales of $258.3 million, up 33% year over, while sales from nebulized Tyvaso were $139.9 million, up 12%.

Overall, Tyvaso sales were $398.2 million, up 25% year over year, driven by higher volumes and continued growth in commercialization utilization by PH-ILD patients. This reported figure beat the Zacks Consensus Estimate of $385 million and our model estimate of $362 million.

Remodulin (including Remunity Pump) sales rose 16% year over year to $147.3 million, while Orenitram sales rose 13% year over year to $107.1 million.

Unituxin sales rose 17% year over year to $51.7 million. Adcirca sales were $5.7 million, down 24%.

Research and development expenses were $139.6 million in the quarter, up 57% year over year. Selling, general and administrative expenses rose 37% to $177.6 million in the quarter.

How Have Estimates Been Moving Since Then?

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

The consensus estimate has shifted -5.4% due to these changes.

VGM Scores

Currently, United Therapeutics has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. However, the stock was allocated a grade of B on the value side, putting it in the second 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, United Therapeutics has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


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