It has been about a month since the last earnings report for Pacira (
PCRX Quick Quote PCRX - Free Report) . Shares have lost about 1.6% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Pacira 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.
Pacira's Q2 Earnings Beat Estimates, Revenues Rise Y/Y
Pacira reported second-quarter 2021 earnings of 77 cents per share, beating the Zacks Consensus Estimate of 76 cents. The company reported earnings of 12 cents per share in the year-ago quarter.
Total revenues surged 79.6% to $135.6 million in the second quarter of 2021 from the year-earlier figure of $75.5 million owing to strong uptake of Exparel. The top line also surpassed the Zacks Consensus Estimate of $134 million.
Quarter in Detail
Pacira’s top line mainly comprises of product revenues, other product sales and royalty revenues.
Exparel net product sales were $130.1 million, up 78.2% from $73 million generated in the year-ago quarter. Sale of the drug also increased 13.4% on a sequential basis.
Exparel/bupivacaine liposome injectable suspension sales came in at $1 million in the reported quarter compared with $0.8 million in the year-ago quarter. Exparel is a liposome injection of bupivacaine, indicated for a single-dose administration into the surgical site to produce postsurgical analgesia. Iovera system generated sales worth $3.8 million in the second quarter of 2021, reflecting a sequential increase of 15.1%.
Royalty revenues came in at $0.7 million in the reported quarter compared with $0.3 million reported in the year-ago quarter.
Research and development (R&D) expenses (excluding stock-based compensation) declined approximately 8.2% to $11.2 million.
Selling, general and administrative (SG&A) expenses (excluding stock-based compensation) increased around 17.4% year over year to $43.1 million in the reported quarter.
Pacira is not providing guidance for 2021 due to the COVID-19 pandemic still negatively impacting sales. As a result, it is reporting monthly intra-quarter unaudited net product sales until the company gains enough visibility around the impacts of COVID-19.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates. The consensus estimate has shifted -10.26% due to these changes.
Currently, Pacira has a subpar Growth Score of D, a grade with the same score on the momentum front. Charting a somewhat similar path, 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 D. If you aren't focused on one strategy, this score is the one you should be interested in.
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Pacira has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.