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Pacira (PCRX) Up 9.3% Since Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for Pacira Pharmaceuticals, Inc. (PCRX - Free Report) . Shares have added about 9.3% 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 the most recent earnings report in order to get a better handle on the important catalysts.
Pacira Posts Earnings in Q3, Revenues Lag Estimates
Pacira reported third-quarter 2017 earnings of 11 cents per share (including the impact of stock-based compensation) comparing favorably with the Zacks Consensus Estimate of a loss of 4 cents. However, earnings were lower than 20 cents recorded a year ago.
Revenues declined 1.5% year over year to $67.3 million and missed the Zacks Consensus Estimate of $69 million. The downturn was due to the discontinuation of DepoCyt(e), and lower collaborative licensing and milestone revenues. However, Exparel sales were $66.8 million in the quarter, up 2.9% year over year. Sales of the drug were up despite fewer selling days and hurricanes in the Southern United States, a region which account for approximately 20% of the drug’s business.
Quarter in Detail
Pacira’s top line comprises product revenues, collaborative licensing and milestone revenues, and royalty revenues. DepoCyt(e) and other product revenues came in at $0.2 million, down 86.3%.
Collaborative licensing and milestone revenues were down 98.1% to $0.03 million. Also, royalty revenues were $0.4 million, down 59.3%.
Nevertheless, research and development (R&D) expenses (including the impact of stock-based compensation) were up 20.8% to $11 million while selling, general and administrative (SG&A) expenses increased 9.3% to $34.3 million.
Recent Developments
In October 2017, the FDA accepted the company’s resubmission of thesupplemental new drug application (sNDA) to expand the label for Exparel for including administration via nerve block for prolonged regional analgesia. The FDA has set an action date of Apr 6, 2018.
In September, Pacira announced a nationwide collaboration with Aetna and the American Association of Oral and Maxillofacial Surgeons (AAOMS). The partnership is aimed at reducing the number of opioid tablets prescribed to patients associated with impacted wisdom teeth extraction through the utilization of Exparel to provide prolonged non-opioid postsurgical pain control.
2017 Outlook
Pacira provided its guidance for 2017. It projects Exparel sales to be in the range of $280 million to $285 million narrowed from 290 million to $310 million, projected earlier. The company, however, reiterated is financial guidance and expects R&D expenses (excluding stock-based compensation) to be in the band of $50 million to $60 million. SG&A expenses (excluding stock based compensation are anticipated to be in the $145-$155 million range. Also, stock-based compensation is expected to be between $30 million and $35 million.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimate followed a downward trend during the past month. There have been one revision lower for the current quarter.
At this time, Pacira's stock has a poor Growth Score of F, however its Momentum is doing a lot better with an B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. 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 momentum based on our styles scores.
Outlook
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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Pacira (PCRX) Up 9.3% Since Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Pacira Pharmaceuticals, Inc. (PCRX - Free Report) . Shares have added about 9.3% 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 the most recent earnings report in order to get a better handle on the important catalysts.
Pacira Posts Earnings in Q3, Revenues Lag Estimates
Pacira reported third-quarter 2017 earnings of 11 cents per share (including the impact of stock-based compensation) comparing favorably with the Zacks Consensus Estimate of a loss of 4 cents. However, earnings were lower than 20 cents recorded a year ago.
Revenues declined 1.5% year over year to $67.3 million and missed the Zacks Consensus Estimate of $69 million. The downturn was due to the discontinuation of DepoCyt(e), and lower collaborative licensing and milestone revenues. However, Exparel sales were $66.8 million in the quarter, up 2.9% year over year. Sales of the drug were up despite fewer selling days and hurricanes in the Southern United States, a region which account for approximately 20% of the drug’s business.
Quarter in Detail
Pacira’s top line comprises product revenues, collaborative licensing and milestone revenues, and royalty revenues. DepoCyt(e) and other product revenues came in at $0.2 million, down 86.3%.
Collaborative licensing and milestone revenues were down 98.1% to $0.03 million. Also, royalty revenues were $0.4 million, down 59.3%.
Nevertheless, research and development (R&D) expenses (including the impact of stock-based compensation) were up 20.8% to $11 million while selling, general and administrative (SG&A) expenses increased 9.3% to $34.3 million.
Recent Developments
In October 2017, the FDA accepted the company’s resubmission of thesupplemental new drug application (sNDA) to expand the label for Exparel for including administration via nerve block for prolonged regional analgesia. The FDA has set an action date of Apr 6, 2018.
In September, Pacira announced a nationwide collaboration with Aetna and the American Association of Oral and Maxillofacial Surgeons (AAOMS). The partnership is aimed at reducing the number of opioid tablets prescribed to patients associated with impacted wisdom teeth extraction through the utilization of Exparel to provide prolonged non-opioid postsurgical pain control.
2017 Outlook
Pacira provided its guidance for 2017. It projects Exparel sales to be in the range of $280 million to $285 million narrowed from 290 million to $310 million, projected earlier. The company, however, reiterated is financial guidance and expects R&D expenses (excluding stock-based compensation) to be in the band of $50 million to $60 million. SG&A expenses (excluding stock based compensation are anticipated to be in the $145-$155 million range. Also, stock-based compensation is expected to be between $30 million and $35 million.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimate followed a downward trend during the past month. There have been one revision lower for the current quarter.
Pacira Pharmaceuticals, Inc. Price and Consensus
Pacira Pharmaceuticals, Inc. Price and Consensus | Pacira Pharmaceuticals, Inc. Quote
VGM Scores
At this time, Pacira's stock has a poor Growth Score of F, however its Momentum is doing a lot better with an B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. 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 momentum based on our styles scores.
Outlook
The stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.