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Why Is Intra-Cellular (ITCI) Down 2.7% Since Last Earnings Report?
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A month has gone by since the last earnings report for Intra-Cellular Therapies (ITCI - Free Report) . Shares have lost about 2.7% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Intra-Cellular due for a breakout? 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 drivers.
Intra-Cellular Q2 Loss Narrower Than Expected, Sales Beat
Intra-Cellularreported second-quarter 2024 loss of 16 cents per share, narrower than the Zacks Consensus Estimate of a loss of 18 cents, primarily due to higher product sales. The company had incurred a loss of 45 cents per share in the year-ago quarter.
Total revenues, comprising product sales and grant revenues, came in at $161.4 million, up 46% year over year. The top line beat the Zacks Consensus Estimate of $158 million.
Quarter in Detail
Net product revenues, comprising Caplyta sales, were up 46% year over year to $161.3 million on the back of strong prescription uptake. Per Intra-Cellular, Caplyta prescriptions jumped 36% year over year and 10% sequentially, reflecting its continued strong uptake in market share gains in bipolar depression.
To maximize the sales potential of Caplyta for its approved indications, the company is planning to increase its sales force during the third quarter of 2024 to expand its accessibility to primary care physicians. Hence, Intra-Cellular is set to hire 150 additional sales representatives.
Research and development (R&D) expenses climbed 13% to $56.2 million from the year-ago quarter’s figure. This uptick was due to higher lumateperone program costs.
Selling, general and administrative (SG&A) expenses increased 20% year over year to $121.6 million, driven by marketing and advertising costs.
As of June 30, 2024, ITCI had cash, cash equivalents, restricted cash and investment securities of $1.025 billion compared with $477.4 million as of March 31, 2024.
2024 Financial Outlook Updated
Intra-Cellular updated its previously announced financial guidance for 2024. It now expects higher full-year Caplyta net product sales in the range of $650-$680 million compared with the previously guided range of $645-$675 million.
The company’s R&D expenses are projected in the range of $210-$230 million, down from the previous guidance of $215-$240 million.
Intra-Cellar expects SG&A expenses in the range of $480-$510 million, up from the previously guided range of $450-$480 million due to an anticipated increase in sales, marketing and other expenses associated with the sales force expansion in the primary care segment in the second half of 2024.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
The consensus estimate has shifted -19.37% due to these changes.
VGM Scores
Currently, Intra-Cellular 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 bottom 20% 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 upward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Intra-Cellular 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
Intra-Cellular is part of the Zacks Medical - Biomedical and Genetics industry. Over the past month, Alkermes (ALKS - Free Report) , a stock from the same industry, has gained 0.4%. The company reported its results for the quarter ended June 2024 more than a month ago.
Alkermes reported revenues of $399.13 million in the last reported quarter, representing a year-over-year change of -35.4%. EPS of $0.72 for the same period compares with $0.55 a year ago.
Alkermes is expected to post earnings of $0.81 per share for the current quarter, representing a year-over-year change of +26.6%. Over the last 30 days, the Zacks Consensus Estimate has changed +5.8%.
Alkermes has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.
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Why Is Intra-Cellular (ITCI) Down 2.7% Since Last Earnings Report?
A month has gone by since the last earnings report for Intra-Cellular Therapies (ITCI - Free Report) . Shares have lost about 2.7% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Intra-Cellular due for a breakout? 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 drivers.
Intra-Cellular Q2 Loss Narrower Than Expected, Sales Beat
Intra-Cellularreported second-quarter 2024 loss of 16 cents per share, narrower than the Zacks Consensus Estimate of a loss of 18 cents, primarily due to higher product sales. The company had incurred a loss of 45 cents per share in the year-ago quarter.
Total revenues, comprising product sales and grant revenues, came in at $161.4 million, up 46% year over year. The top line beat the Zacks Consensus Estimate of $158 million.
Quarter in Detail
Net product revenues, comprising Caplyta sales, were up 46% year over year to $161.3 million on the back of strong prescription uptake. Per Intra-Cellular, Caplyta prescriptions jumped 36% year over year and 10% sequentially, reflecting its continued strong uptake in market share gains in bipolar depression.
To maximize the sales potential of Caplyta for its approved indications, the company is planning to increase its sales force during the third quarter of 2024 to expand its accessibility to primary care physicians. Hence, Intra-Cellular is set to hire 150 additional sales representatives.
Research and development (R&D) expenses climbed 13% to $56.2 million from the year-ago quarter’s figure. This uptick was due to higher lumateperone program costs.
Selling, general and administrative (SG&A) expenses increased 20% year over year to $121.6 million, driven by marketing and advertising costs.
As of June 30, 2024, ITCI had cash, cash equivalents, restricted cash and investment securities of $1.025 billion compared with $477.4 million as of March 31, 2024.
2024 Financial Outlook Updated
Intra-Cellular updated its previously announced financial guidance for 2024. It now expects higher full-year Caplyta net product sales in the range of $650-$680 million compared with the previously guided range of $645-$675 million.
The company’s R&D expenses are projected in the range of $210-$230 million, down from the previous guidance of $215-$240 million.
Intra-Cellar expects SG&A expenses in the range of $480-$510 million, up from the previously guided range of $450-$480 million due to an anticipated increase in sales, marketing and other expenses associated with the sales force expansion in the primary care segment in the second half of 2024.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
The consensus estimate has shifted -19.37% due to these changes.
VGM Scores
Currently, Intra-Cellular 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 bottom 20% 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 upward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Intra-Cellular 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
Intra-Cellular is part of the Zacks Medical - Biomedical and Genetics industry. Over the past month, Alkermes (ALKS - Free Report) , a stock from the same industry, has gained 0.4%. The company reported its results for the quarter ended June 2024 more than a month ago.
Alkermes reported revenues of $399.13 million in the last reported quarter, representing a year-over-year change of -35.4%. EPS of $0.72 for the same period compares with $0.55 a year ago.
Alkermes is expected to post earnings of $0.81 per share for the current quarter, representing a year-over-year change of +26.6%. Over the last 30 days, the Zacks Consensus Estimate has changed +5.8%.
Alkermes has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.