It has been about a month since the last earnings report for Horizon Therapeutics . Shares have added about 3.7% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Horizon 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.
Horizon's Q2 Earnings and Revenues Surpass Estimates
Horizon reported second-quarter 2021 adjusted earnings of $1.62 per share, which beat the Zacks Consensus Estimate of 91 cents and also increased from the year-ago quarter’s adjusted earnings of 40 cents. A significant surge in revenues improved the bottom line.
Quarterly sales of $832.5 million surged 80% year over year and surpassed the Zacks Consensus Estimate of $707 million. Sales were up in the second quarter following the relaunch of Tepezza for treating thyroid eye disease (TED).
Quarter in Detail
The company reports financial results under two segments, namely Orphan (previously known as the Orphan and Rheumatology segment) and Inflammation (previously known as the primary care segment).
Sales in the Orphan segment were $746.5 million, up 97% from the prior-year figure, driven by the strong relaunch of Tepezza as well as continued growth of drugs like Krystexxa, Ravicti and Procysbi. The segment represented almost 90% of total second-quarter net sales.
Krystexxa sales surged 73% year over year to $130.3 million. Tepezza generated net sales worth $453.3 million in the second quarter, up 173% year over year. Tepezza was relaunched in the United States after sales were negatively impacted by a short-term supply disruption due to U.S. government-mandated COVID-19 vaccine orders in the previous quarters.
Ravicti sales were $68.4 million in the quarter, up 4% year over year.
Procysbi sales were $49.8 million in the quarter, up 20% year over year
Net sales in the Inflammation segment were $86 million, up 3% year over year.
Adjusted research and development expenses were $81.1 million, up from $28.2 million in the year-ago quarter. Adjusted SG&A expenses were $281 million, up from $191.4 million in the year-ago quarter.
The company had cash, cash equivalents and investments worth $812.3 million as of Jun 30, 2021, marginally up from $811.6 million as of Mar 31, 2021.
2021 Guidance
Horizon Therapeutics revised the financial guidance it provided earlier this year.
The company expects 2021 net sales between $3.025 billion and $3.125 billion compared with the previous expectation of $2.75-$2.85 billion. The Zacks Consensus Estimate stands at $2.83 billion.
The company expects Tepezza net sales to be greater than $1.55 billion compared with the previous expectation of $1.28 billion. Krystexxa net sales are expected to be above $500 million, unchanged from the previous expectation.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month. The consensus estimate has shifted 9.81% due to these changes.
VGM Scores
Currently, Horizon Therapeutics has an average Growth Score of C, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% 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. It comes with little surprise Horizon Therapeutics has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Why Is Horizon Therapeutics (HZNP) Up 3.7% Since Last Earnings Report?
It has been about a month since the last earnings report for Horizon Therapeutics . Shares have added about 3.7% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Horizon 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.
Horizon's Q2 Earnings and Revenues Surpass Estimates
Horizon reported second-quarter 2021 adjusted earnings of $1.62 per share, which beat the Zacks Consensus Estimate of 91 cents and also increased from the year-ago quarter’s adjusted earnings of 40 cents. A significant surge in revenues improved the bottom line.
Quarterly sales of $832.5 million surged 80% year over year and surpassed the Zacks Consensus Estimate of $707 million. Sales were up in the second quarter following the relaunch of Tepezza for treating thyroid eye disease (TED).
Quarter in Detail
The company reports financial results under two segments, namely Orphan (previously known as the Orphan and Rheumatology segment) and Inflammation (previously known as the primary care segment).
Sales in the Orphan segment were $746.5 million, up 97% from the prior-year figure, driven by the strong relaunch of Tepezza as well as continued growth of drugs like Krystexxa, Ravicti and Procysbi. The segment represented almost 90% of total second-quarter net sales.
Krystexxa sales surged 73% year over year to $130.3 million. Tepezza generated net sales worth $453.3 million in the second quarter, up 173% year over year. Tepezza was relaunched in the United States after sales were negatively impacted by a short-term supply disruption due to U.S. government-mandated COVID-19 vaccine orders in the previous quarters.
Ravicti sales were $68.4 million in the quarter, up 4% year over year.
Procysbi sales were $49.8 million in the quarter, up 20% year over year
Net sales in the Inflammation segment were $86 million, up 3% year over year.
Adjusted research and development expenses were $81.1 million, up from $28.2 million in the year-ago quarter. Adjusted SG&A expenses were $281 million, up from $191.4 million in the year-ago quarter.
The company had cash, cash equivalents and investments worth $812.3 million as of Jun 30, 2021, marginally up from $811.6 million as of Mar 31, 2021.
2021 Guidance
Horizon Therapeutics revised the financial guidance it provided earlier this year.
The company expects 2021 net sales between $3.025 billion and $3.125 billion compared with the previous expectation of $2.75-$2.85 billion. The Zacks Consensus Estimate stands at $2.83 billion.
The company expects Tepezza net sales to be greater than $1.55 billion compared with the previous expectation of $1.28 billion. Krystexxa net sales are expected to be above $500 million, unchanged from the previous expectation.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month. The consensus estimate has shifted 9.81% due to these changes.
VGM Scores
Currently, Horizon Therapeutics has an average Growth Score of C, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% 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. It comes with little surprise Horizon Therapeutics has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.