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Why Is Pacira (PCRX) Up 14.6% Since Last Earnings Report?

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A month has gone by since the last earnings report for Pacira (PCRX - Free Report) . Shares have added about 14.6% in that time frame, outperforming the S&P 500.

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

Pacira's Q1 Earnings Top Estimates, Revenues Rise Y/Y

Pacira reported first-quarter 2020 earnings of 53 cents per share, surpassing the Zacks Consensus Estimate of 32 cents and also increasing from the year-ago figure of 22 cents.

Total revenues too improved 16% from the year-earlier figure of $91.3 million to $105.7 million. Further, the top line beat the Zacks Consensus Estimate of $101 million.

Quarter in Detail

Pacira’s top line mainly comprises product revenues, other product sales and royalty revenues.

Exparel net product sales were $101.3 million, up 12% from $90.6 million in the year-ago quarter.

Exparel/bupivacaine liposome injectable suspension sales came in at $1.2 million compared with $0.3 million in the year-ago quarter.

Though the newly-added product iovera system generated sales worth $2.3 million in the first quarter, the figure reflects a sequential decline of 28.1%.

Meanwhile, royalty revenues of $0.9 million in the reported quarter were up 125% year over year.

Research and development (R&D) expenses (excluding stock-based compensation) rose 10.6% to $14.6 million.

Selling, general and administrative (SG&A) expenses (excluding stock-based compensation) decreased 9.2% year over year to $38.3 million in the reported quarter.

2020 Outlook

Due to the COVID-19 pandemic situation, Pacira does not have enough visibility to forecast its adverse impact. As a result, the company is temporarily withdrawing its full-year financial guidance.

Recent Developments

In January 2020, Pacira announced that its phase IV study of Exparel in patients undergoing cesarean section achieved its primary endpoint with a statistically significant reduction in total postsurgical opioid consumption while maintaining pain scores through 72 hours.

In December 2019, Pacira announced positive results from its phase III PLAY study of Exparel, administered as a single-dose infiltration in pediatric patients undergoing spinal or cardiac surgeries.

How Have Estimates Been Moving Since Then?

Fresh estimates followed a downward path over the past two months.

VGM Scores

At this time, Pacira has a nice Growth Score of B, 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

Pacira has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.


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