It has been about a month since the last earnings report for AMAG Pharmaceuticals, Inc. . Shares have lost about 15.6% in that time frame, underperforming the market .
Will the recent negative trend continue leading up to the stock's next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
AMAG Incurs Loss in Q1, Revenues Rise Y/Y
AMAG reported a loss of $1.06 per share in the first quarter of 2017 compared with loss of $0.22 in the year-ago quarter. The loss includes a one-time payment of $60 million for the acquisition of exclusive U.S. rights to develop and commercialize Palatin Technologies, Inc.’s HSDD drug, RekyndaThe Zacks Consensus Estimate was of earnings of $0.09 per share.
The company’s quarterly revenues came in at $139.5 million, up approximately 27.6% from the year-ago quarter figure of $109.3 million. The upside was driven by impressive growth in sales of Makena. However, revenues missed the Zacks Consensus Estimate.
Quarter in Detail
Makena sales came in at $86.5 million, up 33.1% year over year, primarily driven by an increase in market share to 44%. However, ex-factory sales were down sequentially due to a decline in channel inventory.
Combined sales of Feraheme and MuGard amounted to $26.1 million, up 6.5%. During the quarter, service revenues from CBR came in at $26.9 million, 38% higher than $19.5 million in the year-ago quarter.
Total adjusted costs and expenses increased almost 18% to $83.2 million. Adjusted costs and expenses exclude one-time and special items.
2017 Guidance
The company raised its total revenue guidance range from $620 million - $670 million to $625 million - $685 million to include revenues from the recently acquired Intrarosa. The company expects loss in the range of $44 million to $88 million. The company had earlier expected earnings in the range of $19 million to $60 million. The company reiterated its revenue guidance for Makena ($410 million - $440 million), Feraheme and MuGard ($100 million - $110 million) and CBR Segment ($110 million - $120 million).
How have estimates been moving since then?
Following the release, investors have witnessed a downward trend in fresh estimates. There have been four revisions lower for the current quarter. In the past month, the consensus estimate has shifted lower by 738.9% due to these changes.
AMAG Pharmaceuticals, Inc. Price and Consensus
VGM Scores
At this time, AMAG's stock has a poor Growth Score of 'F'. However, its Momentum is doing a lot better with an 'A'. The stock was allocated a grade of 'B' on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'C'. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate that the stock is more suitable for momentum investors than value investors.
Outlook
Estimates have been broadly trending downward for the stock. The magnitude of this revision also indicates a downward shift. It's no surprise that the stock has a Zacks Rank #5 (Strong Sell). We expect below average returns from the stock in the next few months.
Image: Bigstock
Why Is AMAG Pharmaceuticals (AMAG) Down 15.6% Since the Last Earnings Report?
It has been about a month since the last earnings report for AMAG Pharmaceuticals, Inc. . Shares have lost about 15.6% in that time frame, underperforming the market .
Will the recent negative trend continue leading up to the stock's next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
AMAG Incurs Loss in Q1, Revenues Rise Y/Y
AMAG reported a loss of $1.06 per share in the first quarter of 2017 compared with loss of $0.22 in the year-ago quarter. The loss includes a one-time payment of $60 million for the acquisition of exclusive U.S. rights to develop and commercialize Palatin Technologies, Inc.’s HSDD drug, RekyndaThe Zacks Consensus Estimate was of earnings of $0.09 per share.
The company’s quarterly revenues came in at $139.5 million, up approximately 27.6% from the year-ago quarter figure of $109.3 million. The upside was driven by impressive growth in sales of Makena. However, revenues missed the Zacks Consensus Estimate.
Quarter in Detail
Makena sales came in at $86.5 million, up 33.1% year over year, primarily driven by an increase in market share to 44%. However, ex-factory sales were down sequentially due to a decline in channel inventory.
Combined sales of Feraheme and MuGard amounted to $26.1 million, up 6.5%. During the quarter, service revenues from CBR came in at $26.9 million, 38% higher than $19.5 million in the year-ago quarter.
Total adjusted costs and expenses increased almost 18% to $83.2 million. Adjusted costs and expenses exclude one-time and special items.
2017 Guidance
The company raised its total revenue guidance range from $620 million - $670 million to $625 million - $685 million to include revenues from the recently acquired Intrarosa. The company expects loss in the range of $44 million to $88 million. The company had earlier expected earnings in the range of $19 million to $60 million. The company reiterated its revenue guidance for Makena ($410 million - $440 million), Feraheme and MuGard ($100 million - $110 million) and CBR Segment ($110 million - $120 million).
How have estimates been moving since then?
Following the release, investors have witnessed a downward trend in fresh estimates. There have been four revisions lower for the current quarter. In the past month, the consensus estimate has shifted lower by 738.9% due to these changes.
AMAG Pharmaceuticals, Inc. Price and Consensus
AMAG Pharmaceuticals, Inc. Price and Consensus | AMAG Pharmaceuticals, Inc. Quote
VGM Scores
At this time, AMAG's stock has a poor Growth Score of 'F'. However, its Momentum is doing a lot better with an 'A'. The stock was allocated a grade of 'B' on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'C'. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate that the stock is more suitable for momentum investors than value investors.
Outlook
Estimates have been broadly trending downward for the stock. The magnitude of this revision also indicates a downward shift. It's no surprise that the stock has a Zacks Rank #5 (Strong Sell). We expect below average returns from the stock in the next few months.