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Why Is Esperion Therapeutics (ESPR) Down 3.9% Since Last Earnings Report?
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It has been about a month since the last earnings report for Esperion Therapeutics (ESPR - Free Report) . Shares have lost about 3.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Esperion Therapeutics 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.
Esperion's Q2 Loss Narrows, Revenues Soar Year Over Year
Esperion incurred a loss of 5 cents per share for the second quarter of 2024, which was narrower than the Zacks Consensus Estimate of a loss of 15 cents. The company had incurred a loss of 46 cents per share in the year-ago quarter.
Esperion generated revenues of $73.8 million, up nearly 186% year over year, driven by higher collaboration revenues and product revenues in the United States. The reported figure beat the Zacks Consensus Estimate of $52 million.
Quarter in Detail
Esperion has two FDA-approved drugs in its commercial portfolio — Nexletol and Nexlizet. The company records royalties on sales of its drugs in ex-U.S. markets.
Product revenues, solely from the United States, totaled $28.3 million in the second quarter, up 39% year over year. The upside was driven by continued prescription growth. During the quarter, the drugs’ retail prescription increased 41% year over year and 14% quarter over quarter.
Product revenues missed the Zacks Consensus Estimate of $29.7 million.
Esperion recorded collaboration revenues, including combined royalty and partner revenues, of $45.5 million during the second quarter, up 727% year over year. The surge was mainly due to revenues recognized from the litigation-related settlement received from Daiichi Sankyo Europe (DSE),
Collaboration revenues significantly beat the Zacks Consensus Estimate and our model estimate of $20.7 million and $22.2 million, respectively.
Research and development expenses declined 48% from the year-ago period’s levels to $11.5 million, primarily related to the close-out of the company’s CLEAR Outcomes study.
Selling, general and administrative expenses were up 30% year over year to $44.2 million. The upside was due to an increase in sales force, and bonus payments and promotional costs.
As of June 30, 2024, Esperion had cash, cash equivalents, restricted cash and investment securities of $189.3 million compared with $226.6 million as of March 31, 2024.
2024 Guidance
Esperion reiterated its financial outlook for 2024. The company continues to expect operating expenses in the range of $225-$245 million, including $20 million in non-cash expenses related to stock compensation.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -16.67% 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 a C. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 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
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 is part of the Zacks Medical - Drugs industry. Over the past month, Nektar Therapeutics (NKTR - Free Report) , a stock from the same industry, has gained 7.8%. The company reported its results for the quarter ended June 2024 more than a month ago.
Nektar reported revenues of $23.49 million in the last reported quarter, representing a year-over-year change of +14.6%. EPS of -$0.25 for the same period compares with -$0.27 a year ago.
For the current quarter, Nektar is expected to post a loss of $0.23 per share, indicating a change of -21.1% from the year-ago quarter. The Zacks Consensus Estimate has changed -6.5% over the last 30 days.
Nektar has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.
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Why Is Esperion Therapeutics (ESPR) Down 3.9% Since Last Earnings Report?
It has been about a month since the last earnings report for Esperion Therapeutics (ESPR - Free Report) . Shares have lost about 3.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Esperion Therapeutics 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.
Esperion's Q2 Loss Narrows, Revenues Soar Year Over Year
Esperion incurred a loss of 5 cents per share for the second quarter of 2024, which was narrower than the Zacks Consensus Estimate of a loss of 15 cents. The company had incurred a loss of 46 cents per share in the year-ago quarter.
Esperion generated revenues of $73.8 million, up nearly 186% year over year, driven by higher collaboration revenues and product revenues in the United States. The reported figure beat the Zacks Consensus Estimate of $52 million.
Quarter in Detail
Esperion has two FDA-approved drugs in its commercial portfolio — Nexletol and Nexlizet. The company records royalties on sales of its drugs in ex-U.S. markets.
Product revenues, solely from the United States, totaled $28.3 million in the second quarter, up 39% year over year. The upside was driven by continued prescription growth. During the quarter, the drugs’ retail prescription increased 41% year over year and 14% quarter over quarter.
Product revenues missed the Zacks Consensus Estimate of $29.7 million.
Esperion recorded collaboration revenues, including combined royalty and partner revenues, of $45.5 million during the second quarter, up 727% year over year. The surge was mainly due to revenues recognized from the litigation-related settlement received from Daiichi Sankyo Europe (DSE),
Collaboration revenues significantly beat the Zacks Consensus Estimate and our model estimate of $20.7 million and $22.2 million, respectively.
Research and development expenses declined 48% from the year-ago period’s levels to $11.5 million, primarily related to the close-out of the company’s CLEAR Outcomes study.
Selling, general and administrative expenses were up 30% year over year to $44.2 million. The upside was due to an increase in sales force, and bonus payments and promotional costs.
As of June 30, 2024, Esperion had cash, cash equivalents, restricted cash and investment securities of $189.3 million compared with $226.6 million as of March 31, 2024.
2024 Guidance
Esperion reiterated its financial outlook for 2024. The company continues to expect operating expenses in the range of $225-$245 million, including $20 million in non-cash expenses related to stock compensation.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -16.67% 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 a C. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 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
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 is part of the Zacks Medical - Drugs industry. Over the past month, Nektar Therapeutics (NKTR - Free Report) , a stock from the same industry, has gained 7.8%. The company reported its results for the quarter ended June 2024 more than a month ago.
Nektar reported revenues of $23.49 million in the last reported quarter, representing a year-over-year change of +14.6%. EPS of -$0.25 for the same period compares with -$0.27 a year ago.
For the current quarter, Nektar is expected to post a loss of $0.23 per share, indicating a change of -21.1% from the year-ago quarter. The Zacks Consensus Estimate has changed -6.5% over the last 30 days.
Nektar has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.