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Why Is United Therapeutics (UTHR) Up 1.1% Since Last Earnings Report?

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A month has gone by since the last earnings report for United Therapeutics (UTHR - Free Report) . Shares have added about 1.1% in that time frame, underperforming 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 catalysts.

Q3 Earnings & Sales Beat Estimates

United Therapeutics’ third-quarter 2024 earnings of $6.39 per share beat the Zacks Consensus Estimate of $6.18. Earnings rose 19% year over year on the back of higher product sales.

Revenues were $748.9 million, beating the Zacks Consensus Estimate of $717.5 million. Revenues rose 23% year over year, driven by meaningful growth of key products — Tyvaso, Orenitram and Unituxin.

Quarter in Detail

Tyvaso DPI recorded sales of $274.6 million, up 34% year over year, while sales from nebulized Tyvaso were $159.2 million, up 32%.

Overall, Tyvaso sales were $433.8 million, up 33% 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 $410 million and our model estimate of $375 million.

Remodulin (including Remunity Pump) sales fell 2% year over year to $128.3 million due to a decline in the drug’s ex-U.S. sales.

Sales of Orenitram rose 23% year over year to $113.2 million, driven by increased demand for the drug.

Unituxin sales rose 19% year over year to $61.1 million. Adcirca sales were $7.0 million, down 4%.

Research and development expenses were $103.5 million in the quarter, up 22% year over year, driven by increased expenditures related to manufactured organ and organ alternative projects.

Selling, general and administrative expenses surged 72% to $219.2 million in the quarter. This uptick was due to an increase in personnel expenses.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed an upward trend in fresh estimates.

VGM Scores

Currently, United Therapeutics has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. Following the exact same course, the stock was allocated a grade of A on the value side, putting it in the top quintile 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 upward 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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