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Acadia (ACAD) Up 10% Since Last Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for Acadia Pharmaceuticals (ACAD - Free Report) . Shares have added about 10% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Acadia 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.
Acadiareported second-quarter 2024 earnings of 20 cents per share, beating the Zacks Consensus Estimate of 16 cents. In the year-ago quarter, the company had recorded earnings of 1 cent per share.
The bottom line improved year over year owing to higher product sales.
Acadia recorded total revenues of $242 million, which beat the Zacks Consensus Estimate of $235 million. ACAD’s net product revenues comprise revenues generated from the sale of its two marketed products, Nuplazid and the newly launched Daybue.
Total revenues jumped 46% year over year, primarily driven by the contribution from Daybue and the continued growth in market share of Nuplazid.
Quarter in Detail
Revenues from Nuplazid increased 11% year over year to $157.4 million, driven by 6% growth in unit sales in second-quarter 2024 compared with the year-ago quarter. Nuplazid sales beat the Zacks Consensus Estimate of $145 million as well as our model estimate of $144.7 million.
Daybue recorded net product sales of $84.6 million in the second quarter, up 11% sequentially, driven by the growth in the drug’s unit sales. The reported figure, however, missed the Zacks Consensus Estimate of $90 million as well as our model estimate of $92.3 million.
Research and development (R&D) expenses were $76.2 million, up 30% year over year. The uptick in R&D cost was mainly due to increased costs from ACP-101, ACP-204 and other early-stage programs, partially offset by a reduction in costs associated with Acadia’s pimavanserin negative symptoms of schizophrenia program.
Selling, general and administrative (SG&A) expenses were $117.1 million, up 22% year over year. The increase in such expenses can be primarily attributed to a new consumer activation program to support the Nuplazid franchise. Increased marketing costs of Daybue in the United States, along with investments to commercialize the drug outside the United States also fueled the surge in SG&A expenses.
Acadia had cash, cash equivalents and investments worth $500.9 million as of Jun 30, 2024, compared with $470.5 million as of Mar 31, 2024.
2024 Guidance Updated
Acadia updated its financial guidance for 2024 in its second-quarter earnings release.
The company now expects Daybue sales in the range of $340-$370 million in 2024 compared with the previously guided range of $370-$420 million.
Nuplazid revenues are projected in the band of $590-$610 million, up from the previously guided range of $560-$590 million, reflecting stronger underlying demand driving recent higher unit volume.
Moreover, ACAD expects full-year R&D expenses in the band of $305-$315 million, which is narrower than the previously guided range of $305-$325 million.
On the other hand, SG&A expenses are now anticipated in the range of $465-$480 million compared with the previously guided range of $455-$480 million on account of higher commercialization costs associated with the Daybue launch.
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 -15.31% due to these changes.
VGM Scores
Currently, Acadia has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. 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, Acadia 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
Acadia belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Apellis Pharmaceuticals, Inc. (APLS - Free Report) , has gained 12.5% over the past month. More than a month has passed since the company reported results for the quarter ended June 2024.
Apellis Pharmaceuticals reported revenues of $199.69 million in the last reported quarter, representing a year-over-year change of +110.3%. EPS of -$0.28 for the same period compares with -$1.02 a year ago.
Apellis Pharmaceuticals is expected to post a loss of $0.27 per share for the current quarter, representing a year-over-year change of +76.9%. Over the last 30 days, the Zacks Consensus Estimate has changed -5.7%.
Apellis Pharmaceuticals has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.
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Acadia (ACAD) Up 10% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Acadia Pharmaceuticals (ACAD - Free Report) . Shares have added about 10% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Acadia 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.
Acadia Q2 Earnings Beat, Product Sales Drive Revenues
Acadiareported second-quarter 2024 earnings of 20 cents per share, beating the Zacks Consensus Estimate of 16 cents. In the year-ago quarter, the company had recorded earnings of 1 cent per share.
The bottom line improved year over year owing to higher product sales.
Acadia recorded total revenues of $242 million, which beat the Zacks Consensus Estimate of $235 million. ACAD’s net product revenues comprise revenues generated from the sale of its two marketed products, Nuplazid and the newly launched Daybue.
Total revenues jumped 46% year over year, primarily driven by the contribution from Daybue and the continued growth in market share of Nuplazid.
Quarter in Detail
Revenues from Nuplazid increased 11% year over year to $157.4 million, driven by 6% growth in unit sales in second-quarter 2024 compared with the year-ago quarter. Nuplazid sales beat the Zacks Consensus Estimate of $145 million as well as our model estimate of $144.7 million.
Daybue recorded net product sales of $84.6 million in the second quarter, up 11% sequentially, driven by the growth in the drug’s unit sales. The reported figure, however, missed the Zacks Consensus Estimate of $90 million as well as our model estimate of $92.3 million.
Research and development (R&D) expenses were $76.2 million, up 30% year over year. The uptick in R&D cost was mainly due to increased costs from ACP-101, ACP-204 and other early-stage programs, partially offset by a reduction in costs associated with Acadia’s pimavanserin negative symptoms of schizophrenia program.
Selling, general and administrative (SG&A) expenses were $117.1 million, up 22% year over year. The increase in such expenses can be primarily attributed to a new consumer activation program to support the Nuplazid franchise. Increased marketing costs of Daybue in the United States, along with investments to commercialize the drug outside the United States also fueled the surge in SG&A expenses.
Acadia had cash, cash equivalents and investments worth $500.9 million as of Jun 30, 2024, compared with $470.5 million as of Mar 31, 2024.
2024 Guidance Updated
Acadia updated its financial guidance for 2024 in its second-quarter earnings release.
The company now expects Daybue sales in the range of $340-$370 million in 2024 compared with the previously guided range of $370-$420 million.
Nuplazid revenues are projected in the band of $590-$610 million, up from the previously guided range of $560-$590 million, reflecting stronger underlying demand driving recent higher unit volume.
Moreover, ACAD expects full-year R&D expenses in the band of $305-$315 million, which is narrower than the previously guided range of $305-$325 million.
On the other hand, SG&A expenses are now anticipated in the range of $465-$480 million compared with the previously guided range of $455-$480 million on account of higher commercialization costs associated with the Daybue launch.
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 -15.31% due to these changes.
VGM Scores
Currently, Acadia has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. 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, Acadia 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
Acadia belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Apellis Pharmaceuticals, Inc. (APLS - Free Report) , has gained 12.5% over the past month. More than a month has passed since the company reported results for the quarter ended June 2024.
Apellis Pharmaceuticals reported revenues of $199.69 million in the last reported quarter, representing a year-over-year change of +110.3%. EPS of -$0.28 for the same period compares with -$1.02 a year ago.
Apellis Pharmaceuticals is expected to post a loss of $0.27 per share for the current quarter, representing a year-over-year change of +76.9%. Over the last 30 days, the Zacks Consensus Estimate has changed -5.7%.
Apellis Pharmaceuticals has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.