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What's in Store for United Therapeutics' (UTHR) Q2 Earnings?

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United Therapeutics (UTHR - Free Report) is expected to report second-quarter 2022 results on Aug 3, before market open.

The biotechnology company beat earnings expectations in three of the trailing four quarters, while missing the same once. The company delivered a four-quarter earnings surprise of 15.34%. In the last reported quarter, the company delivered an earnings surprise of 69.93%.

United Therapeutics Corporation Price, Consensus and EPS Surprise

 

United Therapeutics Corporation Price, Consensus and EPS Surprise

United Therapeutics Corporation price-consensus-eps-surprise-chart | United Therapeutics Corporation Quote

Shares of United Therapeutics have gained 5.5% against the industry’s 20.3% decline.

 

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Let’s see how things have shaped up for the quarter to be reported.

Factors to Consider

The demand for United Therapeutics’ approved drugs, which include Tyvaso, Remodulin, Orenitram, Unituxin and Adcirca, is expected to have driven revenue growth in the to-be-reported quarter.

In May, United Therapeutics received FDA approval for Tyvaso Dry Powder Inhaler (DPI) (Treprostinil) for the treatment of pulmonary arterial hypertension (PAH) and pulmonary hypertension associated with interstitial lung disease (PH-ILD). This is expected to have benefitted Tyvaso sales in the to-be-reported quarter, which is already recording strong sales growth, driven by patient growth. The Zacks Consensus Estimate for total Tyvaso sales is currently pegged at $184 million.

Tyvaso DPI is the only DPI approved by the FDA for use in PAH and PH-ILD. United Therapeutics has developed the Tyvaso DPI formulation in partnership with MannKind Corporation (MNKD - Free Report) .

Tyvaso DPI incorporates the dry powder formulation technology and Dreamboat inhalation device technology used in one of MannKind’s FDA-approved inhalation powder products. Per an existing agreement, MannKind is responsible for manufacturing and supplying Tyvaso DPI to United Therapeutics.

In the last reported quarter, revenues from Remodulin increased significantly year over year, a trend that is most likely to have continued in the to-be-reported quarter. The Zacks Consensus Estimate for total Remodulin sales is pegged at $120 million.

Higher volumes (driven by the FREEDOM-EV label expansion) and price increases are likely to have driven Orenitram sales in the second quarter. The Zacks Consensus Estimate for total sales of Orenitram is pegged at $82 million.

Sales of Unituxin and Adcirca are anticipated to have increased in the to-be-reported quarter as the last quarter. Estimates for total sales of Unituxin and Adcircaare pegged at $49.34 million and $8.60 million, respectively.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for United Therapeutics this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here.

Earnings ESP: United Therapeutics’ Earnings ESP is -6.34%, as the Zacks Consensus Estimate of $4.10 per share is higher than the Most Accurate Estimate of $3.84 per share. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Zacks Rank: United Therapeutics currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Here are some stocks in the same sector worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

Ionis Pharmaceuticals (IONS - Free Report) has an Earnings ESP of +27.61% and a Zacks Rank of 2 at present.

Shares of Ionis Pharmaceuticals have returned 25.9% year to date. Earnings of IONSbeat estimates in two of the last four quarters and missed the mark on the other two occasions, witnessing a surprise of 24.35%, on average.

Neurocrine Biosciences (NBIX - Free Report) has an Earnings ESP of +27.61% and a Zacks Rank of 2 at present.

Shares of Neurocrine have returned 11.8% in the year-to-date period. Earnings of NBIX missed earnings estimates in all the last four quarters, witnessing a negative surprise of 60.73%, on average.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.