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Esperion Therapeutics (ESPR) Down 32.5% Since Last Earnings Report: Can It Rebound?
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A month has gone by since the last earnings report for Esperion Therapeutics (ESPR - Free Report) . Shares have lost about 32.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Esperion Therapeutics due for a breakout? 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 catalysts.
Esperion Q4 Earnings and Revenues Beat Estimates
Esperion incurred a loss of $2.26 per share in the fourth quarter of 2019, narrower than the Zacks Consensus Estimate of $2.71. The company had incurred loss of $2.24 per share in the year-ago period.
The company generated revenues of $0.98 million, slightly ahead of the Zacks Consensus Estimate of $0.97 million. The company did not record any revenues in the year-ago quarter. Revenues in the reported quarter were mainly attributable to initial recognition of the upfront payment related to the commercial agreement with Daiichi Sankyo Europe
Quarter in Details
Research and development (R&D) expenses decreased 22.8% from the year-ago period to $38.2 million.
General and administrative expenses were up 93.8% year over year to $21.7 million, primarily due to costs to support pre-commercialization activities for Nexletol and Nexlizet.
As of Dec 31, 2019, Esperion had cash, cash equivalents and investment securities of $201.7 million compared with $244.8 million as of Sep 30, 2019.
2019 Results
Esperion recorded revenues of $148.4 million in 2019. With no approved products and active collaborations, revenues were nil in 2018. Loss for the period was $3.59 per share, narrower than the year-ago loss of $7.54 per share.
2020 Guidance
Esperion provided its 2020 guidance for collaboration revenues and operating expenses. The company expects a milestone payment of $150 million from Daiichi Sankyo Europe.
The company anticipates R&D expense for 2020 to be in the range of $145-$155 million. Selling, general and administrative (SG&A) expense is expected to increase significantly year over year in 2020 to the range of $225-$235 million. These expenses exclude stock-based compensation. Increase in SG&A expenses was attributable to commercialization costs of its recently approved drugs.
However, the company did not provide any guidance for sales of its products – Nexletol and Nexlizet – in the United Sales and royalties from their sales in Europe in 2020.
The company anticipates its current funds along with expected income and any product sales to be sufficient to fund operations.
How Have Estimates Been Moving Since Then?
Estimates revision followed a downward path over the past two months. The consensus estimate has shifted -23.8% due to these changes.
VGM Scores
At this time, Esperion Therapeutics has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. However, the stock was allocated a grade of F on the value side, putting it in the lowest quintile 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.
Outlook
Esperion Therapeutics has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Esperion Therapeutics (ESPR) Down 32.5% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Esperion Therapeutics (ESPR - Free Report) . Shares have lost about 32.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Esperion Therapeutics due for a breakout? 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 catalysts.
Esperion Q4 Earnings and Revenues Beat Estimates
Esperion incurred a loss of $2.26 per share in the fourth quarter of 2019, narrower than the Zacks Consensus Estimate of $2.71. The company had incurred loss of $2.24 per share in the year-ago period.
The company generated revenues of $0.98 million, slightly ahead of the Zacks Consensus Estimate of $0.97 million. The company did not record any revenues in the year-ago quarter. Revenues in the reported quarter were mainly attributable to initial recognition of the upfront payment related to the commercial agreement with Daiichi Sankyo Europe
Quarter in Details
Research and development (R&D) expenses decreased 22.8% from the year-ago period to $38.2 million.
General and administrative expenses were up 93.8% year over year to $21.7 million, primarily due to costs to support pre-commercialization activities for Nexletol and Nexlizet.
As of Dec 31, 2019, Esperion had cash, cash equivalents and investment securities of $201.7 million compared with $244.8 million as of Sep 30, 2019.
2019 Results
Esperion recorded revenues of $148.4 million in 2019. With no approved products and active collaborations, revenues were nil in 2018. Loss for the period was $3.59 per share, narrower than the year-ago loss of $7.54 per share.
2020 Guidance
Esperion provided its 2020 guidance for collaboration revenues and operating expenses. The company expects a milestone payment of $150 million from Daiichi Sankyo Europe.
The company anticipates R&D expense for 2020 to be in the range of $145-$155 million. Selling, general and administrative (SG&A) expense is expected to increase significantly year over year in 2020 to the range of $225-$235 million. These expenses exclude stock-based compensation. Increase in SG&A expenses was attributable to commercialization costs of its recently approved drugs.
However, the company did not provide any guidance for sales of its products – Nexletol and Nexlizet – in the United Sales and royalties from their sales in Europe in 2020.
The company anticipates its current funds along with expected income and any product sales to be sufficient to fund operations.
How Have Estimates Been Moving Since Then?
Estimates revision followed a downward path over the past two months. The consensus estimate has shifted -23.8% due to these changes.
VGM Scores
At this time, Esperion Therapeutics has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. However, the stock was allocated a grade of F on the value side, putting it in the lowest quintile 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.
Outlook
Esperion Therapeutics has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.