A month has gone by since the last earnings report for Esperion Therapeutics (ESPR Quick QuoteESPR - Free Report) . Shares have lost about 15.1% 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 Q1 Earnings & Revenues Top Estimates

Esperion incurred a loss per share of 93 cents per share for the first quarter of 2022, narrower than the Zacks Consensus Estimate of a loss of 96 cents per share. The company had recorded a loss of $3.50 per share in the year-ago period. Robust sales growth of its approved drugs in the U.S. as well as ex-U.S. markets led to the narrower year-over-year loss. The company also achieved year-over-year cost savings of 32% in operational expenses.

The company generated revenues of $18.8 million, up almost 135% year over year. Revenues also beat the Zacks Consensus Estimate of $15.53 million.

Quarter in Details

Product revenues, solely from the United States, were $13.4 million in the first quarter, up approximately 109% year over year. Product revenues were up 9.8% sequentially.

The company recorded royalty revenues of $1.1 million during the reported quarter, compared with $0.6 million in the year-ago quarter. Royalty revenues were driven by the continued rollout of Nilemdo and Nustendi in European countries as well as growth in previously launched territories.

Research and development (R&D) expense decreased 13.2% from the year-ago period to $24.3 million due to a decline in alternative supply manufacturing and compensation costs.

Selling, general and administrative expenses (SG&A) were down 50.2% year over year to $30.4 million, reflecting the positive impact of its cost-savings programs as part of its transformational plan announced in the fourth quarter of 2021. The year-ago quarter also included a one-time legal settlement charge of $13.3 million.

As of Mar 31, 2022, Esperion had cash, cash equivalents, restricted cash and investment securities of $268.5 million, compared with cash, cash equivalents and short-term investments of $309.3 million as of Dec 31, 2021.

2022 Guidance Maintained

Esperion maintained its guidance for R&D and SG&A costs in 2022 provided in January. The company expects R&D expense for 2022 to be in the range of $100-$110 million, while SG&A expense is expected to be between $120 million and $130 million.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates revision.

VGM Scores

At this time, Esperion Therapeutics 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 F on the value side, putting it in the fifth quintile for this investment strategy.

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