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Pacira (PCRX) Up 7.6% Since Last Earnings Report: Can It Continue?

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It has been about a month since the last earnings report for Pacira (PCRX - Free Report) . Shares have added about 7.6% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Pacira 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's Q3 Earnings Top Estimates, Revenues Rise Y/Y

Pacira reported third-quarter 2019 earnings of 48 cents per share, surpassing the Zacks Consensus Estimate of 34 cents and also the year-ago bottom line of 31 cents.

Total revenues also increased 25% year over year to $104.7 million from the year-earlier number of $83.4 million. Meanwhile, revenues were almost in line with the Zacks Consensus Estimate of $105 million.

Quarter in Detail

Pacira’s top line mainly comprises product revenues, other product sales and royalty revenues.

Expare/bupivacaine liposome injectable suspension sales came in at $101.7, rising 23% year over year. Also, the same inched up 1.9% sequentially. Exparel is a liposome injection of bupivacaine, which is indicated for single-dose administration into the surgical site to produce postsurgical analgesia.

Newly-added product iovera system generated sales of $2.6 million in the reported quarter, reflecting an increase of 30% sequentially.

Royalty revenues came in at $0.33 million in the reported quarter, down 55% year over year.

Research and development (R&D) expenses (excluding stock-based compensation) surged 36.9% to $18.9 million.

Selling, general and administrative (SG&A) expenses (excluding stock-based compensation) increased 13.3% to $43.4 million in the reported quarter.

2019 Outlook

Pacira provided its guidance for Exparel sales in 2019 and expects the same in the $400-$410 million range. This is intact with the last reported quarter’s estimate.

iovera net product sales are expected in the range of $8- $10 million, unchanged from the previous quarter’s projection.

How Have Estimates Been Moving Since Then?

Fresh estimates followed a downward path over the past two months. The consensus estimate has shifted -28.85% due to these changes.

VGM Scores

At this time, Pacira has a great Growth Score of A, a grade with the same score on the momentum front. However, 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 A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Pacira has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


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