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Why Is Alkermes (ALKS) Up 4.7% Since Last Earnings Report?
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A month has gone by since the last earnings report for Alkermes (ALKS - Free Report) . Shares have added about 4.7% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Alkermes 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 drivers.
Alkermes Q4 Earnings & Revenues Surpass Estimates
Alkermesreported adjusted earnings of 34 cents per share in the fourth quarter of 2018, outperforming the Zacks Consensus Estimate of a loss of 6 cents. The bottom line also exceeded the adjusted earnings of 31 cents recorded in the year-ago quarter.
The company’s revenues of $315.8 million in the quarter increased 14.7% year over year. The top line beat the Zacks Consensus Estimate of $253 million.
Results were driven by strong growth in the company’s proprietary products — Vivitrol and Aristada. Net sales for Vivitrol and Aristada were $132.7 million in the quarter, reflecting 28% increase from the year-ago quarter.
Revenues Rise
Manufacturing and royalty revenues from Risperdal Consta, Invega Sustenna/Xeplion and Invega Trinza/Trevicta were $81.4 million, up 4.1% year over year. The same from Ampyra/Fampyra were up 1.8% year over year to $38.8 million. Research and development revenues were $15.6 million, of which $14.4 million was related to the collaboration with Biogen Inc. for BIIB098.
Vivitrol sales improved 11% year over year to $83.8 million.
Aristada sales came in at $48.8 million, up 72% year over year.
Costs Rise
Research and Development (R&D) expenses were $108.9 million, down 4.3% year over year.
Selling, General and Administrative (SG&A) expenses were $141.2 million, up 27.4% year over year.
Full-Year 2018 Results
For 2018, adjusted earnings came in at 61 cents per share compared with 17 cents in 2017.
Revenues in 2018 increased 21% year over year to $1.09 billion.
2019 Outlook
The company expects total revenues of $1.14-$1.19 billion, driven by anticipated growth of the company’s proprietary products and an expected $150-million milestone payment from Biogen in the fourth quarter, related to the potential FDA approval of diroximel fumarate (BIIB098).
The Zacks Consensus Estimate for 2019 revenues is $1.10 billion.
Alkermes expects Vivitrol sales to be $330-$350 million, while Aristada sales are anticipated to be $210-$230 million. The company expects R&D expenses to be $450-$480 million. Alkermes’ guidance for SG&A expenses is $590-$620 million.
Alkermes expects earnings per share to be 25-43 cents. The Zacks Consensus Estimate for 2019 earnings is 62 cents.
Pipeline Update
In November 2018, Alkermes announced positive top-line results from ENLIGHTEN-2, a pivotal phase III study of ALKS 3831 compared to Lilly’s Zyprexa (olanzapine) in patients with stable schizophrenia. In the study, ALKS 3831 met the pre-specified co-primary endpoints.
In December 2018, Alkermes and Biogen announced the submission of a new drug application (NDA) to the FDA for diroximel fumarate, a novel oral fumarate in development for the treatment of relapsing forms of multiple sclerosis.
In February 2019, Alkermes received a Complete Response Letter from the FDA regarding the NDA for ALKS 5461, for the adjunctive treatment of major depressive disorder.
How Have Estimates Been Moving Since Then?
Fresh estimates followed a downward path over the past two months. The consensus estimate has shifted -1166.67% due to these changes.
VGM Scores
Currently, Alkermes has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, 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 C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Alkermes has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Why Is Alkermes (ALKS) Up 4.7% Since Last Earnings Report?
A month has gone by since the last earnings report for Alkermes (ALKS - Free Report) . Shares have added about 4.7% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Alkermes 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 drivers.
Alkermes Q4 Earnings & Revenues Surpass Estimates
Alkermesreported adjusted earnings of 34 cents per share in the fourth quarter of 2018, outperforming the Zacks Consensus Estimate of a loss of 6 cents. The bottom line also exceeded the adjusted earnings of 31 cents recorded in the year-ago quarter.
The company’s revenues of $315.8 million in the quarter increased 14.7% year over year. The top line beat the Zacks Consensus Estimate of $253 million.
Results were driven by strong growth in the company’s proprietary products — Vivitrol and Aristada. Net sales for Vivitrol and Aristada were $132.7 million in the quarter, reflecting 28% increase from the year-ago quarter.
Revenues Rise
Manufacturing and royalty revenues from Risperdal Consta, Invega Sustenna/Xeplion and Invega Trinza/Trevicta were $81.4 million, up 4.1% year over year. The same from Ampyra/Fampyra were up 1.8% year over year to $38.8 million. Research and development revenues were $15.6 million, of which $14.4 million was related to the collaboration with Biogen Inc. for BIIB098.
Vivitrol sales improved 11% year over year to $83.8 million.
Aristada sales came in at $48.8 million, up 72% year over year.
Costs Rise
Research and Development (R&D) expenses were $108.9 million, down 4.3% year over year.
Selling, General and Administrative (SG&A) expenses were $141.2 million, up 27.4% year over year.
Full-Year 2018 Results
For 2018, adjusted earnings came in at 61 cents per share compared with 17 cents in 2017.
Revenues in 2018 increased 21% year over year to $1.09 billion.
2019 Outlook
The company expects total revenues of $1.14-$1.19 billion, driven by anticipated growth of the company’s proprietary products and an expected $150-million milestone payment from Biogen in the fourth quarter, related to the potential FDA approval of diroximel fumarate (BIIB098).
The Zacks Consensus Estimate for 2019 revenues is $1.10 billion.
Alkermes expects Vivitrol sales to be $330-$350 million, while Aristada sales are anticipated to be $210-$230 million. The company expects R&D expenses to be $450-$480 million. Alkermes’ guidance for SG&A expenses is $590-$620 million.
Alkermes expects earnings per share to be 25-43 cents. The Zacks Consensus Estimate for 2019 earnings is 62 cents.
Pipeline Update
In November 2018, Alkermes announced positive top-line results from ENLIGHTEN-2, a pivotal phase III study of ALKS 3831 compared to Lilly’s Zyprexa (olanzapine) in patients with stable schizophrenia. In the study, ALKS 3831 met the pre-specified co-primary endpoints.
In December 2018, Alkermes and Biogen announced the submission of a new drug application (NDA) to the FDA for diroximel fumarate, a novel oral fumarate in development for the treatment of relapsing forms of multiple sclerosis.
In February 2019, Alkermes received a Complete Response Letter from the FDA regarding the NDA for ALKS 5461, for the adjunctive treatment of major depressive disorder.
How Have Estimates Been Moving Since Then?
Fresh estimates followed a downward path over the past two months. The consensus estimate has shifted -1166.67% due to these changes.
VGM Scores
Currently, Alkermes has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, 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 C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Alkermes has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.