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Ionis Pharmaceuticals (IONS) Down 20.4% Since Last Earnings Report: Can It Rebound?
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It has been about a month since the last earnings report for Ionis Pharmaceuticals (IONS - Free Report) . Shares have lost about 20.4% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Ionis Pharmaceuticals 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 drivers.
Ionis reported fourth-quarter adjusted earnings per share of 81 cents compared with $1.38 per share in the year-ago period.
Adjusted earnings exclude expenses related to the Akcea acquisition and restructured European operations. Including these non-recurring expenses, loss per share was $2.44 per share. The Zacks Consensus Estimate stood at earnings of 24 cents per share.
Ionis reported total revenues of $290 million, down 41.3% year over year due to lower R&D revenues and royalties on Spinraza in the quarter. Sales however beat the Zacks Consensus Estimate of $266 million.
Quarter in Detail
Ionis has three commercial medicines approved in major global markets, Spinraza, Tegsedi and Waylivra. It has licensed Spinraza to Biogen.
Biogen is responsible for commercializing Spinraza. Ionis receives royalties from Biogen on Spinraza’s sales. Tegsedi and Waylivra are its own products. While Tegsedi is marketed in both the United States and EU, Waylivra is marketed in European countries.
Ionis earns commercial revenues, primarily royalty payments on net sales of Spinraza and R&D revenues, from partnered medicines.
Fourth-quarter revenues comprised commercial revenues of $96 million, down 4% year over year, and R&D revenues of $194 million, down 51% from the year-ago quarter.
Commercial revenues from Spinraza royalties were $75 million, down 7.4% year over year as Biogen reported softer sales of the drug. Product sales from Tegsedi and Waylivra were $19 million, compared with $13 million in the year-ago quarter. License and royalty revenues were $2 million in the quarter compared with $6 million in the year-ago quarter.
Adjusted operating costs declined 5.6% year over year to $187 million in the fourth quarter of 2020.
2020 Results
The company recorded revenues of $729 million in 2020, down 35.1% year over year. Adjusted earnings per share were 64 cents in 2020 compared with $3.59 per share in 2019.
2021 Guidance
Ionis expects total revenues in 2021 to be more than $600 million while adjusted net loss is expected to be less than $75 million.
Adjusted operating expense is expected to be in the range of $675 million to $725 million as Ionis invests in expanding its wholly-owned pipeline and utility of its technology, and building its commercial capabilities. Ionis expects R&D expenses to increase approximately 25% to 35% in 2021 from last year while SG&A expenses are expected to decrease. Ionis expects R&D revenues to be higher in the second half of the year compared to the first.
The Akcea acquisition and SOBI distribution agreement in EU will enable Ionis to realize more than $50 million of savings in 2021.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month. The consensus estimate has shifted -186.51% due to these changes.
VGM Scores
Currently, Ionis Pharmaceuticals has an average Growth Score of C, a grade with the same score on the momentum front. Following the exact same course, 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.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Ionis Pharmaceuticals has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
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Ionis Pharmaceuticals (IONS) Down 20.4% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Ionis Pharmaceuticals (IONS - Free Report) . Shares have lost about 20.4% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Ionis Pharmaceuticals 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 drivers.
Ionis Q4 Earnings Decline Y/Y, Sales Beat Estimates
Ionis reported fourth-quarter adjusted earnings per share of 81 cents compared with $1.38 per share in the year-ago period.
Adjusted earnings exclude expenses related to the Akcea acquisition and restructured European operations. Including these non-recurring expenses, loss per share was $2.44 per share. The Zacks Consensus Estimate stood at earnings of 24 cents per share.
Ionis reported total revenues of $290 million, down 41.3% year over year due to lower R&D revenues and royalties on Spinraza in the quarter. Sales however beat the Zacks Consensus Estimate of $266 million.
Quarter in Detail
Ionis has three commercial medicines approved in major global markets, Spinraza, Tegsedi and Waylivra. It has licensed Spinraza to Biogen.
Biogen is responsible for commercializing Spinraza. Ionis receives royalties from Biogen on Spinraza’s sales. Tegsedi and Waylivra are its own products. While Tegsedi is marketed in both the United States and EU, Waylivra is marketed in European countries.
Ionis earns commercial revenues, primarily royalty payments on net sales of Spinraza and R&D revenues, from partnered medicines.
Fourth-quarter revenues comprised commercial revenues of $96 million, down 4% year over year, and R&D revenues of $194 million, down 51% from the year-ago quarter.
Commercial revenues from Spinraza royalties were $75 million, down 7.4% year over year as Biogen reported softer sales of the drug. Product sales from Tegsedi and Waylivra were $19 million, compared with $13 million in the year-ago quarter. License and royalty revenues were $2 million in the quarter compared with $6 million in the year-ago quarter.
Adjusted operating costs declined 5.6% year over year to $187 million in the fourth quarter of 2020.
2020 Results
The company recorded revenues of $729 million in 2020, down 35.1% year over year. Adjusted earnings per share were 64 cents in 2020 compared with $3.59 per share in 2019.
2021 Guidance
Ionis expects total revenues in 2021 to be more than $600 million while adjusted net loss is expected to be less than $75 million.
Adjusted operating expense is expected to be in the range of $675 million to $725 million as Ionis invests in expanding its wholly-owned pipeline and utility of its technology, and building its commercial capabilities. Ionis expects R&D expenses to increase approximately 25% to 35% in 2021 from last year while SG&A expenses are expected to decrease. Ionis expects R&D revenues to be higher in the second half of the year compared to the first.
The Akcea acquisition and SOBI distribution agreement in EU will enable Ionis to realize more than $50 million of savings in 2021.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month. The consensus estimate has shifted -186.51% due to these changes.
VGM Scores
Currently, Ionis Pharmaceuticals has an average Growth Score of C, a grade with the same score on the momentum front. Following the exact same course, 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.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Ionis Pharmaceuticals has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.