It has been about a month since the last earnings report for United Therapeutics (UTHR Quick QuoteUTHR - Free Report) . Shares have added about 3.4% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is 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 the most recent earnings report in order to get a better handle on the important catalysts.

Q2 Earnings & Sales Beat Estimates

United Therapeutics reported earnings of $3.65 per share for second-quarter 2021, beating the Zacks Consensus Estimate of $2.86 per share. Earnings rose 51% year over year due to higher revenues and lower costs.

The abovementioned earnings include the impact of share-based compensation expenses, impairment charges and other items. Excluding these items, adjusted earnings were $4.09 per share, up 11% year over year.

Revenues for the reported quarter were $446.5 million, which beat the Zacks Consensus Estimate of $379.0 million. Revenues rose 23% year over year driven by revenue growth of all its products.

United Therapeutics markets four products for pulmonary arterial hypertension (PAH) — Remodulin, Tyvaso, Adcirca and Orenitram. Higher sales of Orenitram, Unituxin and Tyvaso offset lower sales of Remodulin and Adcirca.

Quarter in Detail

Orenitram sales amounted to $76.2 million in the reported quarter, up 1% year over year due to higher volumes resulting from patient growth, following the FREEDOM-EV label expansion.

Tyvaso sales totaled $153.8 million, up 29% year over year, gaining from higher volumes as a result of patient growth following the label expansion approval for PH-ILD indication in April based on data from the phase III INCREASE study.

The company saw the highest level of new prescriptions and patient starts of Tyvaso and Orenitram since their launches in the second quarter. It expects to double the number of patients on Tyvaso therapy by 2022 mainly through the PH-ILD label expansion.

Remodulin sales were $139.8 million, up 17% year over year due to a recovery in patient starts from the impact of the pandemic. In the second quarter, Remodulin recorded the highest number of scripts and starts in the past 12 years. In the second quarter, the generic form of subcutaneous treprostinil was launched. However, its supply remains limited.

Unituxin’s sales of $53.1 million surged 83% year over year driven by volume growth. In the second quarter, Unituxin was launched in Japan with a broader label than in the United States and a large order was placed by its Japanese partner.

Adcirca sales were $23.6 million, up 22% year over year.

Research and development (R&D) expenses were $74.3 million in the quarter, down 17% year over year due to lower spending following completion of the phase 3 DISTINCT study of Unituxin in 2020 and discontinuation of development of biomechanical lungs in March 2021. Selling, general and administrative expense rose 7% to $112.8 million in the quarter due to higher legal and consulting costs.
 

How Have Estimates Been Moving Since Then?

It turns out, estimates revision have trended upward during the past month.

VGM Scores

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

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, United Therapeutics has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.