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Why Is Pacira (PCRX) Down 9.2% Since Last Earnings Report?
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It has been about a month since the last earnings report for Pacira (PCRX - Free Report) . Shares have lost about 9.2% 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 the most recent earnings report in order to get a better handle on the important catalysts.
Pacira's Q2 Earnings Miss Estimates, Revenues Rise Y/Y
Pacira reported second-quarter 2022 adjusted earnings of 51 cents per share, missing the Zacks Consensus Estimate of 81 cents. The company had reported adjusted earnings of 77 cents per share in the year-ago quarter.
Total revenues increased 25% to $169.4 million in the second quarter of 2022 from the year-ago figure of $135.6 million, owing to a continuous strong uptake of Exparel and successful synergies from the Flexion acquisition. The top line, however, missed the Zacks Consensus Estimate of $170 million.
Quarter in Detail
Pacira’s top line mainly comprises product revenues, other product sales and royalty revenues.
Exparel net product sales were $137 million, up 5.3% from $130.1 million generated in the year-ago quarter. Sales of the drug increased 6% on a sequential basis.
Exparel/bupivacaine liposome injectable suspension sales came in at $1 million in the reported quarter, which remained flat from the figure reported in the year-ago quarter.
Iovera system generated sales worth $3.2 million in the second quarter of 2022, reflecting a decline of 15.8% year over year. Sales of the Iovera system witnessed a sequential increase of 6.7%.
Net product sales from Zilretta were $27.4 million in 2022 in the reported quarter.
Royalty revenues came in at $0.8 million in the reported quarter compared with $0.7 million reported in the year-ago period.
Research and development (R&D) expenses (excluding stock-based compensation) increased significantly year over year to $24.7 million.
Selling, general and administrative (SG&A) expenses (excluding stock-based compensation) increased 30.1% year over year to $56.4 million in the reported quarter.
2022 Outlook
Pacira is not providing guidance for 2022 due to the COVID-19 pandemic still negatively impacting sales. As a result, it is reporting monthly intra-quarter unaudited net product sales for Exparel, Zilretta and iovera until it gains enough visibility around the impacts of COVID-19.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
The consensus estimate has shifted -30.77% due to these changes.
VGM Scores
Currently, Pacira has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, 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 C. 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, Pacira has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Pacira belongs to the Zacks Medical - Drugs industry. Another stock from the same industry, ImmunoGen , has gained 1.3% over the past month. More than a month has passed since the company reported results for the quarter ended June 2022.
ImmunoGen reported revenues of $14.16 million in the last reported quarter, representing a year-over-year change of -16.5%. EPS of -$0.24 for the same period compares with -$0.15 a year ago.
ImmunoGen is expected to post a loss of $0.26 per share for the current quarter, representing a year-over-year change of -44.4%. Over the last 30 days, the Zacks Consensus Estimate has changed +1.4%.
ImmunoGen has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.
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Why Is Pacira (PCRX) Down 9.2% Since Last Earnings Report?
It has been about a month since the last earnings report for Pacira (PCRX - Free Report) . Shares have lost about 9.2% 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 the most recent earnings report in order to get a better handle on the important catalysts.
Pacira's Q2 Earnings Miss Estimates, Revenues Rise Y/Y
Pacira reported second-quarter 2022 adjusted earnings of 51 cents per share, missing the Zacks Consensus Estimate of 81 cents. The company had reported adjusted earnings of 77 cents per share in the year-ago quarter.
Total revenues increased 25% to $169.4 million in the second quarter of 2022 from the year-ago figure of $135.6 million, owing to a continuous strong uptake of Exparel and successful synergies from the Flexion acquisition. The top line, however, missed the Zacks Consensus Estimate of $170 million.
Quarter in Detail
Pacira’s top line mainly comprises product revenues, other product sales and royalty revenues.
Exparel net product sales were $137 million, up 5.3% from $130.1 million generated in the year-ago quarter. Sales of the drug increased 6% on a sequential basis.
Exparel/bupivacaine liposome injectable suspension sales came in at $1 million in the reported quarter, which remained flat from the figure reported in the year-ago quarter.
Iovera system generated sales worth $3.2 million in the second quarter of 2022, reflecting a decline of 15.8% year over year. Sales of the Iovera system witnessed a sequential increase of 6.7%.
Net product sales from Zilretta were $27.4 million in 2022 in the reported quarter.
Royalty revenues came in at $0.8 million in the reported quarter compared with $0.7 million reported in the year-ago period.
Research and development (R&D) expenses (excluding stock-based compensation) increased significantly year over year to $24.7 million.
Selling, general and administrative (SG&A) expenses (excluding stock-based compensation) increased 30.1% year over year to $56.4 million in the reported quarter.
2022 Outlook
Pacira is not providing guidance for 2022 due to the COVID-19 pandemic still negatively impacting sales. As a result, it is reporting monthly intra-quarter unaudited net product sales for Exparel, Zilretta and iovera until it gains enough visibility around the impacts of COVID-19.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
The consensus estimate has shifted -30.77% due to these changes.
VGM Scores
Currently, Pacira has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, 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 C. 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, Pacira has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Pacira belongs to the Zacks Medical - Drugs industry. Another stock from the same industry, ImmunoGen , has gained 1.3% over the past month. More than a month has passed since the company reported results for the quarter ended June 2022.
ImmunoGen reported revenues of $14.16 million in the last reported quarter, representing a year-over-year change of -16.5%. EPS of -$0.24 for the same period compares with -$0.15 a year ago.
ImmunoGen is expected to post a loss of $0.26 per share for the current quarter, representing a year-over-year change of -44.4%. Over the last 30 days, the Zacks Consensus Estimate has changed +1.4%.
ImmunoGen has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.