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PDL BioPharma (PDLI) Up 5.9% Since Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for PDL BioPharma, Inc. (PDLI - Free Report) . Shares have added about 5.9% 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 catalysts.
PDL BioPharma Fourth Quarter Earnings Lag, Revenues Fall Y/Y
PDL BioPharma reported adjusted loss of $0.06 per share in the fourth quarter of 2016. The Zacks Consensus Estimate was of earnings of $0.13 per share. The company had reported adjusted earnings of $0.56 per share in the year-ago period.
The company generated total revenue of $66.5 million in the quarter, significantly lower than year-earlier figure of $178.1 million.
Quarter in Detail
Revenues included royalties of $15.5 million from licenses to the Queen et al. patents, which consisted of royalties earned on fourth-quarter sales of Tysabri, net royalty payments from acquired royalty rights and a change in fair value of the royalty rights assets of 28.1 million, interest revenues of $5.5 million, product revenues of $17.5 million (sales of Noden products – Tekturna and Tekturna HCT in the U.S. and Rasilez and Rasilez HCT in the ex-U.S.).
Revenues from the Queen et al. licenses were down 87.2% due to the expiration of the patent license agreement.
Net cash royalty and milestone payments from acquired royalty rights amounted to $25.3 million in the fourth quarter compared with $34.4 million in the year-ago period.
Research and development (R&D) expense for the quarter came in at $1.9 million. This included research and development costs related to the completion of the pediatric trial on Tekturna by Noden. No R&D costs were recorded in the year-ago quarter.
General and administrative expenses were nearly $12.6 million, almost in line with the year-ago figure.
2016 Results
Full-year sales of $244.3 million were significantly lower than prior-year figure of $590.4 million. However, sales beat the Zacks Consensus Estimate of $231.7 million.
Full-year earnings of $0.63 per share surpassed Zacks Consensus Estimate of earnings of $0.18. The company had posted earnings of $1.96 per share a year ago.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed an upward trend in fresh estimate. There has been one revision higher for the current quarter In the past month, the consensus estimate has shifted by 66.7% due to these changes.
At this time, PDL BioPharma's stock has a poor Growth Score of 'F', a grade with the same score on the momentum front. However, the stock was allocated a grade of 'A' on the value side, putting it in the top 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.
The company's stock is suitable solely for value based on our styles scores.
Outlook
Estimates have been trending upward for the stock. The magnitude of these revisions also looks promising. Notably, 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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PDL BioPharma (PDLI) Up 5.9% Since Earnings Report: Can It Continue?
It has been about a month since the last earnings report for PDL BioPharma, Inc. (PDLI - Free Report) . Shares have added about 5.9% 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 catalysts.
PDL BioPharma Fourth Quarter Earnings Lag, Revenues Fall Y/Y
PDL BioPharma reported adjusted loss of $0.06 per share in the fourth quarter of 2016. The Zacks Consensus Estimate was of earnings of $0.13 per share. The company had reported adjusted earnings of $0.56 per share in the year-ago period.
The company generated total revenue of $66.5 million in the quarter, significantly lower than year-earlier figure of $178.1 million.
Quarter in Detail
Revenues included royalties of $15.5 million from licenses to the Queen et al. patents, which consisted of royalties earned on fourth-quarter sales of Tysabri, net royalty payments from acquired royalty rights and a change in fair value of the royalty rights assets of 28.1 million, interest revenues of $5.5 million, product revenues of $17.5 million (sales of Noden products – Tekturna and Tekturna HCT in the U.S. and Rasilez and Rasilez HCT in the ex-U.S.).
Revenues from the Queen et al. licenses were down 87.2% due to the expiration of the patent license agreement.
Net cash royalty and milestone payments from acquired royalty rights amounted to $25.3 million in the fourth quarter compared with $34.4 million in the year-ago period.
Research and development (R&D) expense for the quarter came in at $1.9 million. This included research and development costs related to the completion of the pediatric trial on Tekturna by Noden. No R&D costs were recorded in the year-ago quarter.
General and administrative expenses were nearly $12.6 million, almost in line with the year-ago figure.
2016 Results
Full-year sales of $244.3 million were significantly lower than prior-year figure of $590.4 million. However, sales beat the Zacks Consensus Estimate of $231.7 million.
Full-year earnings of $0.63 per share surpassed Zacks Consensus Estimate of earnings of $0.18. The company had posted earnings of $1.96 per share a year ago.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed an upward trend in fresh estimate. There has been one revision higher for the current quarter In the past month, the consensus estimate has shifted by 66.7% due to these changes.
PDL BioPharma, Inc. Price and Consensus
PDL BioPharma, Inc. Price and Consensus | PDL BioPharma, Inc. Quote
VGM Scores
At this time, PDL BioPharma's stock has a poor Growth Score of 'F', a grade with the same score on the momentum front. However, the stock was allocated a grade of 'A' on the value side, putting it in the top 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.
The company's stock is suitable solely for value based on our styles scores.
Outlook
Estimates have been trending upward for the stock. The magnitude of these revisions also looks promising. Notably, the stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.