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Pacira Pharmaceuticals (PCRX) Down 4.7% Since Earnings Report: Can It Rebound?
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A month has gone by since the last earnings report for Pacira Pharmaceuticals, Inc. (PCRX - Free Report) . Shares have lost about 4.7% in that time frame.
Will the recent negative trend continue leading up to its next earnings release, or is PCRX due for a breakout? 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 Q4, Revenues in Line
Pacira reported fourth-quarter 2017 earnings of 38 cents per share surpassing the Zacks Consensus Estimate of 12 cents and the loss of 11 cents recorded a year ago.
Revenues increased 8.5% year over year to $79.1 million and at par with the Zacks Consensus Estimate. Exparel sales were $78.7 million in the quarter, up 10% year over year. Sales of the drug continue to grow and the drug is now been used in over 3.5 million patients across the United States.
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 47.8%.
Collaborative licensing and milestone revenues were down 92.3% to $0.03 million. Also, royalty revenues were $0.2 million, down 71.1%.
Research and development (R&D) expenses (including the impact of stock-based compensation) were down 41.3% to $10 million while selling, general and administrative (SG&A) expenses increased 13% to $39.2 million.
Recent Developments
In February 2018, the FDA’s Anesthetic and Analgesic Drug Products Advisory Committee’s (AADPAC) reviewed the company’s supplemental New Drug Application (sNDA), to expand the label of Exparel to include administration via nerve block for prolonged regional analgesia.
The AADPAC voted six to four against approval of the expanded indication. The committee’s feedback will be considered for the FDA in its review of the sNDA. The FDA has set an action date of Apr 6, 2018.
2017 Results
The company reported earnings per share of 21 cents in 2017 compared with 62 cents in 2016.
The company’s revenues in 2017 were $286.6 million, up 3.7% year over year.
2018 Outlook
Pacira provided its guidance for 2018. It projects Exparel sales to be in the range of $300 million to $310 million. The company 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 $150-$160 million range. Also, stock-based compensation is expected to be between $30 million and $35 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates. There have been three revisions higher for the current quarter.
At this time, PCRX has a nice Growth Score of B, though it is lagging a lot on the momentum front with an F. 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 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 growth investors than value investors.
Outlook
Estimates have been trending upward for the stock and the magnitude of these revisions looks promising. Notably, PCRX has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Pacira Pharmaceuticals (PCRX) Down 4.7% Since Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Pacira Pharmaceuticals, Inc. (PCRX - Free Report) . Shares have lost about 4.7% in that time frame.
Will the recent negative trend continue leading up to its next earnings release, or is PCRX due for a breakout? 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 Q4, Revenues in Line
Pacira reported fourth-quarter 2017 earnings of 38 cents per share surpassing the Zacks Consensus Estimate of 12 cents and the loss of 11 cents recorded a year ago.
Revenues increased 8.5% year over year to $79.1 million and at par with the Zacks Consensus Estimate. Exparel sales were $78.7 million in the quarter, up 10% year over year. Sales of the drug continue to grow and the drug is now been used in over 3.5 million patients across the United States.
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 47.8%.
Collaborative licensing and milestone revenues were down 92.3% to $0.03 million. Also, royalty revenues were $0.2 million, down 71.1%.
Research and development (R&D) expenses (including the impact of stock-based compensation) were down 41.3% to $10 million while selling, general and administrative (SG&A) expenses increased 13% to $39.2 million.
Recent Developments
In February 2018, the FDA’s Anesthetic and Analgesic Drug Products Advisory Committee’s (AADPAC) reviewed the company’s supplemental New Drug Application (sNDA), to expand the label of Exparel to include administration via nerve block for prolonged regional analgesia.
The AADPAC voted six to four against approval of the expanded indication. The committee’s feedback will be considered for the FDA in its review of the sNDA. The FDA has set an action date of Apr 6, 2018.
2017 Results
The company reported earnings per share of 21 cents in 2017 compared with 62 cents in 2016.
The company’s revenues in 2017 were $286.6 million, up 3.7% year over year.
2018 Outlook
Pacira provided its guidance for 2018. It projects Exparel sales to be in the range of $300 million to $310 million. The company 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 $150-$160 million range. Also, stock-based compensation is expected to be between $30 million and $35 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates. There have been three revisions higher 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, PCRX has a nice Growth Score of B, though it is lagging a lot on the momentum front with an F. 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 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 growth investors than value investors.
Outlook
Estimates have been trending upward for the stock and the magnitude of these revisions looks promising. Notably, PCRX has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.