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Why Is Esperion Therapeutics (ESPR) Down 5.6% Since Last Earnings Report?
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It has been about a month since the last earnings report for Esperion Therapeutics (ESPR - Free Report) . Shares have lost about 5.6% 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 Misses Q4 Earnings & Revenue Estimates
Esperion incurred loss per share of $3.89 per share in the fourth quarter of 2020, wider than the Zacks Consensus Estimate of $3.76 per share. The company had incurred loss of $2.26 per share in the year-ago period.
The company generated revenues of $9.6 million, missing the Zacks Consensus Estimate of $18.96 million. The company had recorded revenues of $1.0 million in the year-ago quarter. Sales grew year over year on the back of commercialization of its drugs in the United States.
Quarter in Details
Product revenues were $8.2 million in the fourth quarter compared with $3.3 million in the previous quarter. However, product sales growth was partially hurt due to significantly fewer patient visits to primary care physicians amid the COVID-19 pandemic.
Though the drugs were launched virtually amid the COVID-19 pandemic, sequential sales growth from both drugs was approximately 150% during the fourth quarter as the company achieved high-quality and broad managed care coverage in the United States.
The company recorded collaboration revenues of $1.5 million in the fourth quarter compared with approximately $1 million in the year-ago quarter.
Research and development (R&D) expenses increased 9.8% from the year-ago period to $42 million. The rise was mainly due to one-time upfront payment associated with the in-licensing of an oral PCSK9 inhibitor program. It was partially offset by lower costs following the completion of enrollment in the ongoing cardiovascular outcomes study (CVOT) study on Nexletol.
Selling, general and administrative expenses (SG&A) were up 183.5% year over year to $48.8 million. The significant increase was primarily due to costs to support commercialization activities for Nexletol and Nexlizet.
As of Dec 30, 2020, Esperion had cash, cash equivalents and investment securities of $305 million compared with $215.7 million as of Sep 30, 2020.
Full-Year Results
Esperion reported revenues of $227.5 million, up 53.4% year over year. The company incurred a loss of $5.23 per share in 2020, wider than the year-ago loss of $3.59 per share.
2021 Guidance Issued
Esperion issued guidance for R&D and SG&A costs in 2021. The company anticipates R&D expense for 2021 to be in the range of $120-$130 million. SG&A expense is expected to be between $200 million and $210 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision. The consensus estimate has shifted 32.19% due to these changes.
VGM Scores
At this time, Esperion Therapeutics has a nice Growth Score of B, a grade with the same score on the momentum front. However, the stock was allocated a grade of F on the value side, putting it in the fifth quintile 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
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Esperion Therapeutics has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Esperion Therapeutics (ESPR) Down 5.6% Since Last Earnings Report?
It has been about a month since the last earnings report for Esperion Therapeutics (ESPR - Free Report) . Shares have lost about 5.6% 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 Misses Q4 Earnings & Revenue Estimates
Esperion incurred loss per share of $3.89 per share in the fourth quarter of 2020, wider than the Zacks Consensus Estimate of $3.76 per share. The company had incurred loss of $2.26 per share in the year-ago period.
The company generated revenues of $9.6 million, missing the Zacks Consensus Estimate of $18.96 million. The company had recorded revenues of $1.0 million in the year-ago quarter. Sales grew year over year on the back of commercialization of its drugs in the United States.
Quarter in Details
Product revenues were $8.2 million in the fourth quarter compared with $3.3 million in the previous quarter. However, product sales growth was partially hurt due to significantly fewer patient visits to primary care physicians amid the COVID-19 pandemic.
Though the drugs were launched virtually amid the COVID-19 pandemic, sequential sales growth from both drugs was approximately 150% during the fourth quarter as the company achieved high-quality and broad managed care coverage in the United States.
The company recorded collaboration revenues of $1.5 million in the fourth quarter compared with approximately $1 million in the year-ago quarter.
Research and development (R&D) expenses increased 9.8% from the year-ago period to $42 million. The rise was mainly due to one-time upfront payment associated with the in-licensing of an oral PCSK9 inhibitor program. It was partially offset by lower costs following the completion of enrollment in the ongoing cardiovascular outcomes study (CVOT) study on Nexletol.
Selling, general and administrative expenses (SG&A) were up 183.5% year over year to $48.8 million. The significant increase was primarily due to costs to support commercialization activities for Nexletol and Nexlizet.
As of Dec 30, 2020, Esperion had cash, cash equivalents and investment securities of $305 million compared with $215.7 million as of Sep 30, 2020.
Full-Year Results
Esperion reported revenues of $227.5 million, up 53.4% year over year. The company incurred a loss of $5.23 per share in 2020, wider than the year-ago loss of $3.59 per share.
2021 Guidance Issued
Esperion issued guidance for R&D and SG&A costs in 2021. The company anticipates R&D expense for 2021 to be in the range of $120-$130 million. SG&A expense is expected to be between $200 million and $210 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision. The consensus estimate has shifted 32.19% due to these changes.
VGM Scores
At this time, Esperion Therapeutics has a nice Growth Score of B, a grade with the same score on the momentum front. However, the stock was allocated a grade of F on the value side, putting it in the fifth quintile 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
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Esperion Therapeutics has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.