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Why Is United Therapeutics (UTHR) Up 22.1% Since Last Earnings Report?

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A month has gone by since the last earnings report for United Therapeutics (UTHR - Free Report) . Shares have added about 22.1% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is United Therapeutics due for a pullback? 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.

United Therapeutics Q1 Earnings & Sales Beat

United Therapeutics reported earnings of $5.03 per share for first-quarter 2022, beating the Zacks Consensus Estimate of $2.96 per share. Earnings were 63 cents in the year-ago quarter.

Revenues for the reported quarter were $461.9 million, which beat the Zacks Consensus Estimate of $411.0 million. Revenues rose 22% year over year driven by double-digit revenue growth of Tyvaso, Orenitram and Unituxin. United Therapeutics expects to have 25,000 patients on its therapies by 2025.

Quarter in Detail

Tyvaso sales totaled $172.0 million, up 40% year over year, gaining from higher volumes as a result of patient growth, following the label expansion approval for the PH-ILD indication in April 2021.

The company expects around 6,000 U.S. patients on Tyvaso therapy by the end of 2022. United Therapeutics is approximately halfway toward the goal, with about 4,400 active patients on Tyvaso therapy as of the end of the first quarter.

Orenitram sales amounted to $82.8 million in the reported quarter, up 14% year over year due to higher volumes (driven by the FREEDOM-EV label expansion) and price increases.

Remodulin sales were $131.7 million, up 1% year over year as higher international revenues were offset by lower U.S. sales. Remodulin saw the highest level of referrals in the first quarter of 2022 since 2014 despite generic competition. Unituxin’s sales of $55.6 million rose 27% year over year, driven by the launch in Japan and price increase.

Adcirca sales were $9.8 million, up 2% year over year.

Research and development (R&D) expenses were $69.0 million in the quarter compared with $303.7 million in the year-ago quarter due to higher impairment and special charges recorded in the year-ago quarter. Selling, general and administrative expenses declined 33% to $79.0 million in the quarter.

How Have Estimates Been Moving Since Then?

It turns out, estimates review flatlined during the past month.

The consensus estimate has shifted 12.85% due to these changes.

VGM Scores

Currently, United Therapeutics has a nice Growth Score of B, however its Momentum Score is doing a bit 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 second quintile 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

United Therapeutics has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


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