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Why Is Acadia (ACAD) Up 11.3% Since Last Earnings Report?

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A month has gone by since the last earnings report for Acadia Pharmaceuticals (ACAD - Free Report) . Shares have added about 11.3% in that time frame, outperforming the S&P 500.

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

ACADIA Q1 Earnings Beat, Revenues Fall Shy of Estimates

ACADIA reported first-quarter 2021 loss of 42 cents per share, narrower than the Zacks Consensus Estimate of a loss of 53 cents. In the year-ago quarter, the company reported a loss of 57 cents.

Total revenues comprising net sales of ACADIA's only marketed drug Nuplazid increased 18% year over year to $106.6 million in the first quarter. However, the top line missed the Zacks Consensus Estimate of $113 million.

Quarter in Detail

Research and development (R&D) expenses were $57 million in the quarter, down 21.4% from the year-ago period on decreased development costs related to Nuplazid label expansion studies.

Selling, general and administrative (SG&A) expenses rose 9.5% year over year to $111.7 million due to higher costs associated with the potential launch of Nuplazid for the DRP indication.

As of Mar 31, 2021, ACADIA had cash, cash equivalents and investments worth $577.8 million compared with $632 million as of Dec 31, 2020.

2021 Guidance

ACADIA expects total net sales of Nuplazid in the range of $510-$550 million for 2021. The Zacks Consensus Estimate for the metric stands at $532.7 million.

The company lowered its expectation for R&D expenses to the range of $280-$300 band, which was earlier expected in within $300-$320 million. SG&A expense guidance for the full year is also decreased to $385-$415 million from the earlier projection of $560-$590 million.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed an upward trend in fresh estimates. The consensus estimate has shifted 30.63% due to these changes.

VGM Scores

At this time, Acadia has an average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% 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 looks promising. Notably, Acadia has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


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