We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Ligand (LGND) Down 14% Since Last Earnings Report: Can It Rebound?
Read MoreHide Full Article
It has been about a month since the last earnings report for Ligand Pharmaceuticals (LGND - Free Report) . Shares have lost about 14% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Ligand 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.
Ligand Beats on Q1 Earnings, Misses on Sales
Ligand reported first-quarter 2021 adjusted earnings of $1.41 per share, which significantly beat the Zacks Consensus Estimate of $1.05. The company had reported adjusted earnings of 89 cents in the year-ago quarter.
Total revenues were $55.2 million, up 60.2% from the year-ago quarter. The significant increase was mainly due to higher year over year Captisol revenues and contract revenues. However, the top line missed the Zacks Consensus Estimate of $65.35 million.
Quarterly Highlights
Royalty revenues were up 7.6% year over year to $7.1 million in the first quarter. Ligand primarily earns royalties on sales of Kyprolis and Acrotech Biopharma’s Evomela, which were developed using its Captisol technology. However, royalties were hurt as sales of Kyprolis were lower than expected due to COVID-19.
Captisol sales gained 48.3% year over year to $31.3 million. The increase was due to higher sales of Captisol to support availability of Gilead’s remdesivir. However, Captisol sales were down sequentially. Ligand stated that lower-than-expected Captisol revenues was due to loss of production in February at manufacturing sites in Southern United States owing to extreme cold weather.
Contract revenues were $16.68 million in the first quarter compared with $5.5 million a year ago.
Maintains 2021 Guidance
Ligand maintained its previously announced guidance for sales and earnings for 2021. It expects total revenues to be approximately $291 million and earnings to be $6.15 for the year.
However, the company stated that it may update total revenue guidance at any time during the year based on evolving demand for remdesivir.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
VGM Scores
Currently, Ligand has an average Growth Score of C, however its Momentum Score is doing a lot better with an A. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. 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 this revision indicates a downward shift. Notably, Ligand has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Ligand (LGND) Down 14% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Ligand Pharmaceuticals (LGND - Free Report) . Shares have lost about 14% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Ligand 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.
Ligand Beats on Q1 Earnings, Misses on Sales
Ligand reported first-quarter 2021 adjusted earnings of $1.41 per share, which significantly beat the Zacks Consensus Estimate of $1.05. The company had reported adjusted earnings of 89 cents in the year-ago quarter.
Total revenues were $55.2 million, up 60.2% from the year-ago quarter. The significant increase was mainly due to higher year over year Captisol revenues and contract revenues. However, the top line missed the Zacks Consensus Estimate of $65.35 million.
Quarterly Highlights
Royalty revenues were up 7.6% year over year to $7.1 million in the first quarter. Ligand primarily earns royalties on sales of Kyprolis and Acrotech Biopharma’s Evomela, which were developed using its Captisol technology. However, royalties were hurt as sales of Kyprolis were lower than expected due to COVID-19.
Captisol sales gained 48.3% year over year to $31.3 million. The increase was due to higher sales of Captisol to support availability of Gilead’s remdesivir. However, Captisol sales were down sequentially. Ligand stated that lower-than-expected Captisol revenues was due to loss of production in February at manufacturing sites in Southern United States owing to extreme cold weather.
Contract revenues were $16.68 million in the first quarter compared with $5.5 million a year ago.
Maintains 2021 Guidance
Ligand maintained its previously announced guidance for sales and earnings for 2021. It expects total revenues to be approximately $291 million and earnings to be $6.15 for the year.
However, the company stated that it may update total revenue guidance at any time during the year based on evolving demand for remdesivir.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
VGM Scores
Currently, Ligand has an average Growth Score of C, however its Momentum Score is doing a lot better with an A. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. 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 this revision indicates a downward shift. Notably, Ligand has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.