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Ligand (LGND) Q4 Earnings Down Y/Y, Revenues Miss Estimates
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Ligand Pharmaceuticals Incorporated (LGND - Free Report) reported fourth-quarter 2016 earnings of 50 cents per share (including the impact of stock-based compensation expense), down 11.1% from the year-ago figure.
The Ligand stock underperformed the Zacks classified Medical-Biomed/Genetics industry year to date. The company’s shares lost 6.5% compared with the industry’s increase of 5.9%.
Including one-time and special items, loss in the reported quarter came in at 15 cents per share. The reported figure compared unfavorably with the Zacks Consensus Estimate of a gain of $1.02 per share.
Total revenue in the quarter surged 80.2% year over year to $38.2 million but fell short of the Zacks Consensus Estimate of $41 million.
Quarter Highlights
Royalty revenues were $19.6 million in the reported quarter, up approximately 70.4% year over year. Higher royalties on sales of Novartis AG’s (NVS - Free Report) Promacta and Amgen Inc.’s (AMGN - Free Report) Kyprolis as well as royalty income for Evomela and CorMatrix drove the upside.
Material sales were up 26.4% to $9.1 million due to the timing of Captisol purchases for clinical and commercial use.
License and milestone revenues came in at $9.5 million compared with $2.4 million in the year-ago period. The upside was driven by the timing of achieving milestones in addition of OMT (Open Monoclonal Technology). In Jan 2016, Ligand acquired OMT, Inc. The acquisition added an antibody-generating platform, OmniAb, to the company’s technology portfolio.
Research & development expenses shot up 178.3% to $6.4 million due to the addition of OMT-related expenses, timing of funding of internal development programs and higher stock-based compensation expenses.
General & administrative expenses increased 6.5% year over year to $6.6 million due to costs associated with OMT and higher stock-based compensation expenses.
2016 Results
Full-year sales increased 51.6% year over year to $109 million. Sales marginally missed the Zacks Consensus Estimate of $110.7 million.
Full-year loss of 8 cents per share compared unfavorably with Zacks Consensus Estimate of a gain of $2.47. The company had posted earnings of $10.83 per share a year ago.
2017 Outlook
Ligand expects 2017 earnings of approximately $2.70 per share on revenues of $130 million. The company mentioned that this amount is expected to be higher if additional contract revenues are received in 2017.
Furthermore, Ligand continues to strike new licensing agreements and expand its portfolio. During 2017, Ligand expects to receive up to an additional $30 million of contract payments. The company will provide more information about the timing and probability for any additional contract revenues expected to be booked in 2017 as the year progresses.
Ligand Pharmaceuticals Incorporated Price, Consensus and EPS Surprise
Cellectis’s loss estimates narrowed from $2.33 to $1.80 for 2016 and from $2.94 to $1.69 for 2017 over the last 30 days. The company posted positive surprises in three of the four trailing quarters with an average beat of 111.20%.
Zacks' Top 10 Stocks for 2017
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Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>
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Ligand (LGND) Q4 Earnings Down Y/Y, Revenues Miss Estimates
Ligand Pharmaceuticals Incorporated (LGND - Free Report) reported fourth-quarter 2016 earnings of 50 cents per share (including the impact of stock-based compensation expense), down 11.1% from the year-ago figure.
The Ligand stock underperformed the Zacks classified Medical-Biomed/Genetics industry year to date. The company’s shares lost 6.5% compared with the industry’s increase of 5.9%.
Including one-time and special items, loss in the reported quarter came in at 15 cents per share. The reported figure compared unfavorably with the Zacks Consensus Estimate of a gain of $1.02 per share.
Total revenue in the quarter surged 80.2% year over year to $38.2 million but fell short of the Zacks Consensus Estimate of $41 million.
Quarter Highlights
Royalty revenues were $19.6 million in the reported quarter, up approximately 70.4% year over year. Higher royalties on sales of Novartis AG’s (NVS - Free Report) Promacta and Amgen Inc.’s (AMGN - Free Report) Kyprolis as well as royalty income for Evomela and CorMatrix drove the upside.
Material sales were up 26.4% to $9.1 million due to the timing of Captisol purchases for clinical and commercial use.
License and milestone revenues came in at $9.5 million compared with $2.4 million in the year-ago period. The upside was driven by the timing of achieving milestones in addition of OMT (Open Monoclonal Technology). In Jan 2016, Ligand acquired OMT, Inc. The acquisition added an antibody-generating platform, OmniAb, to the company’s technology portfolio.
Research & development expenses shot up 178.3% to $6.4 million due to the addition of OMT-related expenses, timing of funding of internal development programs and higher stock-based compensation expenses.
General & administrative expenses increased 6.5% year over year to $6.6 million due to costs associated with OMT and higher stock-based compensation expenses.
2016 Results
Full-year sales increased 51.6% year over year to $109 million. Sales marginally missed the Zacks Consensus Estimate of $110.7 million.
Full-year loss of 8 cents per share compared unfavorably with Zacks Consensus Estimate of a gain of $2.47. The company had posted earnings of $10.83 per share a year ago.
2017 Outlook
Ligand expects 2017 earnings of approximately $2.70 per share on revenues of $130 million. The company mentioned that this amount is expected to be higher if additional contract revenues are received in 2017.
Furthermore, Ligand continues to strike new licensing agreements and expand its portfolio. During 2017, Ligand expects to receive up to an additional $30 million of contract payments. The company will provide more information about the timing and probability for any additional contract revenues expected to be booked in 2017 as the year progresses.
Ligand Pharmaceuticals Incorporated Price, Consensus and EPS Surprise
Ligand Pharmaceuticals Incorporated Price, Consensus and EPS Surprise | Ligand Pharmaceuticals Incorporated Quote
Zacks Rank & Other Key Picks
Ligand currently carries a Zacks Rank #2 (Buy). Another favorably placed stock in the health care sector is Cellectis S.A. (CLLS - Free Report) , which sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Cellectis’s loss estimates narrowed from $2.33 to $1.80 for 2016 and from $2.94 to $1.69 for 2017 over the last 30 days. The company posted positive surprises in three of the four trailing quarters with an average beat of 111.20%.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>