We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Horizon Therapeutics (HZNP) Down 9.2% Since Last Earnings Report: Can It Rebound?
Read MoreHide Full Article
It has been about a month since the last earnings report for Horizon Therapeutics . Shares have lost about 9.2% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Horizon Therapeutics due for a breakout? 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.
Horizon Q2 Earnings Miss Estimates, Revenues Rise Y/Y
Horizon reported second-quarter 2022 adjusted earnings of $1.07 per share, which missed the Zacks Consensus Estimate of $1.34. The company had reported adjusted earnings of $1.45 per share in the year-ago quarter.
Quarterly revenues of $876.4 million rose 5% year over year, owing to sales growth in the Orphan segment, especially the solid growth in Krystexxa, which is approved for treating uncontrolled gout. Sales, however, missed the Zacks Consensus Estimate of $936 million.
Quarter in Detail
Horizon 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 $841.3 million, up 13% from the prior-year figure, driven by the strong sales growth in Krystexxa, as well as the continued growth of drugs like Uplizna, Ravicti, Actimmune and Tepezza. The segment represented around 96% of the total second-quarter net sales.
Krystexxa sales rose 29% year over year to $167.8 million. Tepezza generated net sales of $479.8 million in the second quarter, up 6% year over year. Tepezza, which is approved for treating thyroid eye disease, was relaunched in the United States in April 2021 after sales were negatively impacted by a short-term supply disruption due to the U.S. government-mandated COVID-19 vaccine orders.
Ravicti sales were $75.7 million in the quarter, up 11% year over year.
Procysbi sales were $47.7 million in the quarter, down 4% year over year.
Uplizna sales were $38.6 million in the quarter, up 167% year over year.
Actimmune sales were $30 million in the quarter, up 8% year over year.
However, net sales in the Inflammation segment were $35.1 million, down 59% year over year.
Adjusted research and development expenses were $95.4 million, down from $127.5 million in the year-ago quarter. Adjusted SG&A expenses were $352.3 million, up from $281 million in the year-ago quarter.
The company had cash, cash equivalents and investments worth $1.89 billion as of Jun 30, 2022 compared with $1.64 billion as of Mar 31, 2022.
2022 Guidance
Horizon lowered its net sales guidance for full-year 2022.
The company now expects net sales in the range of $3.53-$3.60 billion compared with the previous expectation of $3.9-$4.0 billion for 2022.
For 2022, Tepezza’s net sales percentage growth is now expected in the high-teens, compared with the previous expectation of mid-30s percentage growth.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -26.57% due to these changes.
VGM Scores
Currently, Horizon Therapeutics has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. 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 C. 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 Horizon Therapeutics has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry Player
Horizon Therapeutics belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Gilead Sciences (GILD - Free Report) , has gained 4.9% over the past month. More than a month has passed since the company reported results for the quarter ended June 2022.
Gilead reported revenues of $6.26 billion in the last reported quarter, representing a year-over-year change of +0.7%. EPS of $1.58 for the same period compares with $1.87 a year ago.
Gilead is expected to post earnings of $1.52 per share for the current quarter, representing a year-over-year change of -42.6%. Over the last 30 days, the Zacks Consensus Estimate has changed -2.4%.
Gilead has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Horizon Therapeutics (HZNP) Down 9.2% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Horizon Therapeutics . Shares have lost about 9.2% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Horizon Therapeutics due for a breakout? 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.
Horizon Q2 Earnings Miss Estimates, Revenues Rise Y/Y
Horizon reported second-quarter 2022 adjusted earnings of $1.07 per share, which missed the Zacks Consensus Estimate of $1.34. The company had reported adjusted earnings of $1.45 per share in the year-ago quarter.
Quarterly revenues of $876.4 million rose 5% year over year, owing to sales growth in the Orphan segment, especially the solid growth in Krystexxa, which is approved for treating uncontrolled gout. Sales, however, missed the Zacks Consensus Estimate of $936 million.
Quarter in Detail
Horizon 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 $841.3 million, up 13% from the prior-year figure, driven by the strong sales growth in Krystexxa, as well as the continued growth of drugs like Uplizna, Ravicti, Actimmune and Tepezza. The segment represented around 96% of the total second-quarter net sales.
Krystexxa sales rose 29% year over year to $167.8 million. Tepezza generated net sales of $479.8 million in the second quarter, up 6% year over year. Tepezza, which is approved for treating thyroid eye disease, was relaunched in the United States in April 2021 after sales were negatively impacted by a short-term supply disruption due to the U.S. government-mandated COVID-19 vaccine orders.
Ravicti sales were $75.7 million in the quarter, up 11% year over year.
Procysbi sales were $47.7 million in the quarter, down 4% year over year.
Uplizna sales were $38.6 million in the quarter, up 167% year over year.
Actimmune sales were $30 million in the quarter, up 8% year over year.
However, net sales in the Inflammation segment were $35.1 million, down 59% year over year.
Adjusted research and development expenses were $95.4 million, down from $127.5 million in the year-ago quarter. Adjusted SG&A expenses were $352.3 million, up from $281 million in the year-ago quarter.
The company had cash, cash equivalents and investments worth $1.89 billion as of Jun 30, 2022 compared with $1.64 billion as of Mar 31, 2022.
2022 Guidance
Horizon lowered its net sales guidance for full-year 2022.
The company now expects net sales in the range of $3.53-$3.60 billion compared with the previous expectation of $3.9-$4.0 billion for 2022.
For 2022, Tepezza’s net sales percentage growth is now expected in the high-teens, compared with the previous expectation of mid-30s percentage growth.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -26.57% due to these changes.
VGM Scores
Currently, Horizon Therapeutics has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. 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 C. 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 Horizon Therapeutics has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry Player
Horizon Therapeutics belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Gilead Sciences (GILD - Free Report) , has gained 4.9% over the past month. More than a month has passed since the company reported results for the quarter ended June 2022.
Gilead reported revenues of $6.26 billion in the last reported quarter, representing a year-over-year change of +0.7%. EPS of $1.58 for the same period compares with $1.87 a year ago.
Gilead is expected to post earnings of $1.52 per share for the current quarter, representing a year-over-year change of -42.6%. Over the last 30 days, the Zacks Consensus Estimate has changed -2.4%.
Gilead has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.