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Why Is Catalyst (CPRX) Down 12.6% Since Last Earnings Report?

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It has been about a month since the last earnings report for Catalyst Pharmaceutical (CPRX - Free Report) . Shares have lost about 12.6% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Catalyst 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.

Catalyst Q2 Earnings Top Estimates, Revenues Rise Y/Y

Catalyst reported adjusted earnings of 16 cents per share for second-quarter 2021, beating the Zacks Consensus Estimate of 8 cents. The company reported earnings of 11 cents in the year-ago quarter.

Total revenues of $36.4 million also beat the Zacks Consensus Estimate of $31 million and rose 23% from the year-ago quarter’s $29.6 million. The top line comprised sales of Firdapse (amifampridine), the company’s first approved drug for the treatment of LEMS, and license and other revenues.

Quarter in Detail

Firdapse generated sales worth $33.6 million in the second quarter, up 14% year over year. License and other revenues were $2.7 million for the reported quarter.

Research and development (R&D) expenses of $4.5 million increased from $4.1 million reported in the year-ago quarter.

Selling, general and administrative (SG&A) expenses totaled $11.5 million, up from $10.8 million reported in the year-ago quarter.

As of Jun 30, 2021, Catalyst had cash, cash equivalents and investments worth $155.3 million compared with $143.3 million on Mar 31, 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 -9.52% due to these changes.

VGM Scores

At this time, Catalyst has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. Following the exact same course, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. 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. Notably, Catalyst has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


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