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Horizon Pharma (HZNP) Misses Q4 Earnings & Revenues

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Dublin, Ireland-based Horizon Pharma plc is a biopharmaceutical focused on identifying, developing, acquiring and commercializing products that address unmet therapeutic needs in arthritis, pain, inflammatory and orphan diseases. The company operates through three business units – Orphan, Primary Care and Rheumatology. Its portfolio currently comprises nine marketed products. Key products include Actimmune (chronic granulomatous disease and severe malignant osteopetrosis) and Duexis (signs and symptoms of osteoarthritis and rheumatoid arthritis) among others.

The company has been actively pursuing acquisitions to expand and diversify its portfolio. In this scenario, investor focus remains on the company’s performance apart from the usual top-and bottom-line numbers.

Horizon’s performance has been dismal with the company missing earnings in all of the four trailing quarters. Overall, the company has an average negative earnings surprise of 15.6%.

Currently, Horizon Pharma has a Zacks Rank #3 (Hold), but that could definitely change following the company’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: Horizon Pharma’s fourth-quarter 2016 earnings missed expectations. Our consensus called for EPS of 52 cents, and the company reported EPS of 50 cents (including the impact of share-based compensation expense and tax adjustments).

 

Horizon Pharma PLC Price and EPS Surprise

Horizon Pharma PLC Price and EPS Surprise | Horizon Pharma PLC Quote

Revenues: Revenues in the reported quarter also came in below expectations. Horizon Pharma posted revenues of $310.3 million which missed our consensus estimate of $313.7 million.

Key Stats: All three business units – Orphan, Primary Care and Rheumatology – performed well in the reported quarter. Key products including Actimmune and Ravicti among others drove top-line growth.

2017 Outlook: Horizon Pharma expect net sales to be approximately $1.24 billion to $1.29 billion. The Zacks Consensus Estimate for revenues currently stands at $1.05 billion.

Shares are trading down following the earnings results.

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