A month has gone by since the last earnings report for Acorda Therapeutics, Inc. . Shares have added about 10.6% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock’s next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Acorda Reports Narrower-than-Expected Loss in Q4
Acorda reported loss of $0.07 per share in the fourth quarter of 2016 narrower than the Zacks Consensus Estimate of a loss of $0.18.
However, including the impact of stock-based compensation expenses but excluding other non-recurring items, adjusted loss per share was $0.14. The company had reported a gain of $0.11 per share in the year-ago quarter.
Excluding the impact of stock-based compensation expenses as well as other non-recurring items, fourth-quarter 2016 loss amounted to $0.05 per share. The year-ago earnings of the company had been $0.31 per share.
Total revenue for the quarter came in at $140.6 million, up 7.4%. Reported revenues missed the Zacks Consensus Estimate of $142 million by 1%.
Quarter in Detail
The majority of Acorda’s net product revenue was generated by Ampyra, which raked in sales of $132.3 million in the reported quarter. Revenues grew 8.4% year over year and 2.7% sequentially.
Ampyra is marketed in ex-U.S. markets by Biogen under the trade name Fampyra. Biogen pays royalties to Acorda on outside U.S. sales. Fampyra royalties were $2.7 million, down 18.2% from a year ago.
Zanaflex capsules and tablets (including authorized generic capsules) recorded revenues and royalties of $2.3 million compared with $3.3 million in the year-ago period.
Acorda’s research and development (R&D) expenses (including stock-based compensation expenses) shot up 22.3% year over year to $53.8 million due to increased investment in late-stage programs as well as the addition of Biotie’s R&D expenses. Last September, Acorda acquired the remaining stake in Biotie, thereby completing its acquisition.
Selling, general and administrative (SG&A) expenses (including stock-based compensation expenses and Biotie transaction costs) were up 11.3% to $59 million.
2016 Results
Full-year sales increased 5.9% year over year to $493.4 million. Sales missed the Zacks Consensus Estimate of $520.6 million.
The full-year loss of $0.47 per share was significantly narrower than Zacks Consensus Estimate of a loss of $0.88. The company had posted earnings of $0.25 per share a year ago.
2017 Guidance
The company issued Ampyra net sales guidance in the range of $535–$545 million.
R&D expenses are expected in the range of $185–$195 million (excluding share-based compensation).
The company expects SG&A expenditure in the range of $195–$205 million.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There have been two downward revisions for the current quarter. In the past month, the consensus estimate has shifted downward by 29.6% due to these changes.
VGM Scores
At this time, Acorda's stock has a subpar Growth Score of 'D', however its Momentum is doing a bit better with a 'C'. Following the exact same course, 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 'D'. If you aren't focused on one strategy, this score is the one you should be interested in.
Zacks' style scores indicate that the stock is suitable for value and momentum investors.
Outlook
Estimates have been broadly trending downward for the stock. The magnitude of these revisions also indicates a downward shift. Interestingly, the stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.
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Why Is Acorda (ACOR) Up 10.6% Since the Last Earnings Report?
A month has gone by since the last earnings report for Acorda Therapeutics, Inc. . Shares have added about 10.6% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock’s next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Acorda Reports Narrower-than-Expected Loss in Q4
Acorda reported loss of $0.07 per share in the fourth quarter of 2016 narrower than the Zacks Consensus Estimate of a loss of $0.18.
However, including the impact of stock-based compensation expenses but excluding other non-recurring items, adjusted loss per share was $0.14. The company had reported a gain of $0.11 per share in the year-ago quarter.
Excluding the impact of stock-based compensation expenses as well as other non-recurring items, fourth-quarter 2016 loss amounted to $0.05 per share. The year-ago earnings of the company had been $0.31 per share.
Total revenue for the quarter came in at $140.6 million, up 7.4%. Reported revenues missed the Zacks Consensus Estimate of $142 million by 1%.
Quarter in Detail
The majority of Acorda’s net product revenue was generated by Ampyra, which raked in sales of $132.3 million in the reported quarter. Revenues grew 8.4% year over year and 2.7% sequentially.
Ampyra is marketed in ex-U.S. markets by Biogen under the trade name Fampyra. Biogen pays royalties to Acorda on outside U.S. sales. Fampyra royalties were $2.7 million, down 18.2% from a year ago.
Zanaflex capsules and tablets (including authorized generic capsules) recorded revenues and royalties of $2.3 million compared with $3.3 million in the year-ago period.
Acorda’s research and development (R&D) expenses (including stock-based compensation expenses) shot up 22.3% year over year to $53.8 million due to increased investment in late-stage programs as well as the addition of Biotie’s R&D expenses. Last September, Acorda acquired the remaining stake in Biotie, thereby completing its acquisition.
Selling, general and administrative (SG&A) expenses (including stock-based compensation expenses and Biotie transaction costs) were up 11.3% to $59 million.
2016 Results
Full-year sales increased 5.9% year over year to $493.4 million. Sales missed the Zacks Consensus Estimate of $520.6 million.
The full-year loss of $0.47 per share was significantly narrower than Zacks Consensus Estimate of a loss of $0.88. The company had posted earnings of $0.25 per share a year ago.
2017 Guidance
The company issued Ampyra net sales guidance in the range of $535–$545 million.
R&D expenses are expected in the range of $185–$195 million (excluding share-based compensation).
The company expects SG&A expenditure in the range of $195–$205 million.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There have been two downward revisions for the current quarter. In the past month, the consensus estimate has shifted downward by 29.6% due to these changes.
Acorda Therapeutics, Inc. Price and Consensus
Acorda Therapeutics, Inc. Price and Consensus | Acorda Therapeutics, Inc. Quote
VGM Scores
At this time, Acorda's stock has a subpar Growth Score of 'D', however its Momentum is doing a bit better with a 'C'. Following the exact same course, 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 'D'. If you aren't focused on one strategy, this score is the one you should be interested in.
Zacks' style scores indicate that the stock is suitable for value and momentum investors.
Outlook
Estimates have been broadly trending downward for the stock. The magnitude of these revisions also indicates a downward shift. Interestingly, the stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.