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Ligand Pharmaceuticals (LGND) Q1 Earnings Miss Estimates
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Ligand Pharmaceuticals Incorporated (LGND - Free Report) reported first-quarter 2017 earnings of 31 cents per share (including the impact of stock-based compensation expenses), down 32.5% from the year-ago figure. The bottom line also missed the Zacks Consensus Estimate of 55 cents per share.
However, Ligand’s stock outperformed the Zacks classified Medical-Biomed/Genetics industry year to date. The company’s shares gained 13.3% compared with the industry’s increase of 2%.
Including one-time and special items, earnings in the reported quarter came in at 22 cents per share compared with 30 cents a year ago.
Total revenue in the quarter dipped 1% year over year to $29.3 million and also fell short of the Zacks Consensus Estimate of $34 million.
Quarter Highlights
Royalty revenues were $24.2 million in the reported quarter, up approximately 68.1% 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 Spectrum Pharmaceuticals’ Evomela drove the upside.
Material sales plunged to $1.1 million from the year-ago figure of $5.3 million due to the unfavorable timing of Captisol purchases for clinical and commercial use.
License and milestone revenues were $3.9 million compared with $9.9 million in the year-ago period. The decrease was due to a $6 million milestones payment the company received in the first quarter of 2016 as a result of the Evomela approval, which was absent in the first quarter of 2017.
Research & development expenses increased to $8.7 million from $4 million a year ago, primarily due to the completion of enrollment in its ongoing phase II study with Ligand’s novel, small-molecule GRA program (LGD-6972) for the treatment of type 2 diabetes mellitus.
General & administrative expenses increased 2.8% year over year to $7.3 million.
2017 Outlook
Ligand continues to expect 2017 earnings of approximately $2.70 per share on revenues of $130 million. The core revenues are expected to comprise of royalties of approximately $87 million, material sales of approximately $23 million and contract payments of at least $20 million.
The company mentioned that this amount is expected to increase if additional contract revenues are received in 2017.
Ligand Pharmaceuticals Incorporated Price, Consensus and EPS Surprise
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Ligand Pharmaceuticals (LGND) Q1 Earnings Miss Estimates
Ligand Pharmaceuticals Incorporated (LGND - Free Report) reported first-quarter 2017 earnings of 31 cents per share (including the impact of stock-based compensation expenses), down 32.5% from the year-ago figure. The bottom line also missed the Zacks Consensus Estimate of 55 cents per share.
However, Ligand’s stock outperformed the Zacks classified Medical-Biomed/Genetics industry year to date. The company’s shares gained 13.3% compared with the industry’s increase of 2%.
Including one-time and special items, earnings in the reported quarter came in at 22 cents per share compared with 30 cents a year ago.
Total revenue in the quarter dipped 1% year over year to $29.3 million and also fell short of the Zacks Consensus Estimate of $34 million.
Quarter Highlights
Royalty revenues were $24.2 million in the reported quarter, up approximately 68.1% 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 Spectrum Pharmaceuticals’ Evomela drove the upside.
Material sales plunged to $1.1 million from the year-ago figure of $5.3 million due to the unfavorable timing of Captisol purchases for clinical and commercial use.
License and milestone revenues were $3.9 million compared with $9.9 million in the year-ago period. The decrease was due to a $6 million milestones payment the company received in the first quarter of 2016 as a result of the Evomela approval, which was absent in the first quarter of 2017.
Research & development expenses increased to $8.7 million from $4 million a year ago, primarily due to the completion of enrollment in its ongoing phase II study with Ligand’s novel, small-molecule GRA program (LGD-6972) for the treatment of type 2 diabetes mellitus.
General & administrative expenses increased 2.8% year over year to $7.3 million.
2017 Outlook
Ligand continues to expect 2017 earnings of approximately $2.70 per share on revenues of $130 million. The core revenues are expected to comprise of royalties of approximately $87 million, material sales of approximately $23 million and contract payments of at least $20 million.
The company mentioned that this amount is expected to increase if additional contract revenues are received in 2017.
Ligand Pharmaceuticals Incorporated Price, Consensus and EPS Surprise
Ligand Pharmaceuticals Incorporated Price, Consensus and EPS Surprise | Ligand Pharmaceuticals Incorporated Quote
Zacks Rank
Ligand currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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