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Why Is Apellis Pharmaceuticals (APLS) Up 18.4% Since Last Earnings Report?

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A month has gone by since the last earnings report for Apellis Pharmaceuticals, Inc. (APLS - Free Report) . Shares have added about 18.4% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Apellis Pharmaceuticals 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.

Apellis’ Q3 Loss Wider Than Expected, Syfovre Drives Revenues

Apellisincurred third-quarter 2024 loss of 46 cents per share, wider than the Zacks Consensus Estimate of a loss of 32 cents. The company had incurred a loss of $1.17 per share in the year-ago quarter.

Total revenues in the third quarter amounted to $196.8 million and missed the Zacks Consensus Estimate of $199 million. In the year-ago quarter, the company had reported revenues of $110.4 million.

The top line jumped 78.3% year over year, owing to higher sales of Syfovre (pegcetacoplan injection) in the third quarter.

More on APLS' Q3 Earnings

Revenues in the third quarter included product sales of the marketed drugs — Empaveli (pegcetacoplan) and Syfovre — and licensing and other revenues under the collaboration agreement with Sobi.

Syfovre recorded sales of $152 million in the third quarter, which surged 101.8% year over year, owing to continued strong demand. However, Syfovre's sales missed the Zacks Consensus Estimate of $162 million but slightly beat our model estimate of $151.7 million.

Apellis delivered more than 84,500 commercial vials and nearly 4,000 samples of Syfovre to doctors in the third quarter. As of Sept 30, 2024, the total number of doses of the drug delivered since launch was 420,000.

The potential approval and successful launch of Syfovre in additional geographies will add an incremental stream of revenues to APLS in the future.

Empaveli recorded sales of $24.6 million in the third quarter, up 2.9% from the year-ago quarter’s figure, owing to continued high patient compliance rates of 97%. Empaveli sales were in line with the Zacks Consensus Estimate and beat our model estimate of $23.9 million.

Licensing and other revenues came in at $20.3 million, up 81.3% year over year.

Research and development expenses increased 11.6% from the prior-year quarter’s level to $88.6 million. This was due to an increase in program-specific external costs and other external costs.

General and administrative expenses totaled $122 million, down 16.2% year over year. This was due to decreases in personnel-related costs, marketing activities, office costs, and professional and consulting fees.

As of Sept 30, 2024, Apellis had cash, cash equivalents and marketable securities worth $396.9 million compared with $360.1 million as of June 30, 2024. APLS expects its cash balance, combined with cash anticipated from sales of marketed products, to be enough to fund its operations in the foreseeable future.

How Have Estimates Been Moving Since Then?

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

The consensus estimate has shifted -66.11% due to these changes.

VGM Scores

Currently, Apellis Pharmaceuticals 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 fifth 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. It's no surprise Apellis Pharmaceuticals has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.

Performance of an Industry Player

Apellis Pharmaceuticals belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Techne (TECH - Free Report) , has gained 0.1% over the past month. More than a month has passed since the company reported results for the quarter ended September 2024.

Techne reported revenues of $289.46 million in the last reported quarter, representing a year-over-year change of +4.5%. EPS of $0.42 for the same period compares with $0.41 a year ago.

Techne is expected to post earnings of $0.38 per share for the current quarter, representing a year-over-year change of -5%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

Techne has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.


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