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Catalyst (CPRX) Up 13.3% Since Last Earnings Report: Can It Continue?

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It has been about a month since the last earnings report for Catalyst Pharmaceutical (CPRX - Free Report) . Shares have added about 13.3% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Catalyst due for a pullback? 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 Pharmaceuticals Q2 Earnings Top, Revenues Up

Catalyst Pharmaceuticals reported earnings of 20 cents per share in the second quarter of 2022, beating the Zacks Consensus Estimate of 17 cents. The company reported earnings of 11 cents in the year-ago quarter.

Adjusted earnings (adjusted for stock-based compensation, depreciation and tax provision) came in at 28 cents per share in the reported quarter compared with 16 cents a year ago.

Total revenues amounted to $53.1 million, beating the Zacks Consensus Estimate of $49 million. Sales rose 46.1% from the year-ago quarter’s $36.4 million. The top line primarily comprised significant sales of Firdapse (amifampridine), the company’s first approved drug for the treatment of Lambert-Eaton myasthenic syndrome (“LEMS”) and nominal license and other revenues.

Quarter in Detail

Firdapse generated sales worth $53 million in the second quarter, up 57.7% year over year, primarily driven by organic sales growth of Firdapse and the transition of Ruzurgi patients to Firdapse treatment after the dispute settlement with Jacobus Pharmaceuticals.

License and other revenues were nominal at $0.06 million in the reported quarter, down from $2.73 million in the prior-year quarter.

Research and development (R&D) expenses of $4 million, down from $4.5 million reported in the year-ago quarter.

Selling, general and administrative (SG&A) expenses totaled $12.9 million, up from $11.5 million reported in the year-ago quarter.

As of Jun 30, 2022, Catalyst had cash, cash equivalents and investments worth $220.8 million compared with $198 million as of Mar 31, 2022.

2022 Guidance

Catalyst reiterated the guidance it had provided earlier this year.

For 2022, the company continues to expect total revenues in the range of $195-$205 million, suggesting a 38-45% increase from 2021 levels.

The guidance assumes continued recovery in macro-economic and healthcare activity throughout 2022 from the COVID pandemic.

How Have Estimates Been Moving Since Then?

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

VGM Scores

At this time, Catalyst has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Catalyst has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry Player

Catalyst belongs to the Zacks Medical - Drugs industry. Another stock from the same industry, Theravance Biopharma (TBPH - Free Report) , has gained 0.9% over the past month. More than a month has passed since the company reported results for the quarter ended June 2022.

Theravance Bio reported revenues of $11.05 million in the last reported quarter, representing a year-over-year change of -14.4%. EPS of -$0.04 for the same period compares with -$0.80 a year ago.

Theravance Bio is expected to post a loss of $0.19 per share for the current quarter, representing a year-over-year change of +60.4%. Over the last 30 days, the Zacks Consensus Estimate has changed -32.1%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Theravance Bio. Also, the stock has a VGM Score of D.


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