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Catalyst (CPRX) Up 8.9% Since Last Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for Catalyst Pharmaceutical (CPRX - Free Report) . Shares have added about 8.9% 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 its most recent earnings report in order to get a better handle on the important drivers.
Catalyst's Earnings & Revenues Surpass Estimates in Q3
Catalyst reported earnings of 20 cents per share for the third quarter of 2022, beating the Zacks Consensus Estimate of 19 cents. Earnings were also higher than our estimate of 19 cents. The company reported earnings of 10 cents in the year-ago quarter.
Adjusted earnings (adjusted for stock-based compensation, depreciation, amortization and tax provision) came in at 26 cents per share in the reported quarter compared with 14 cents a year ago.
Total revenues amounted to $57.2 million, beating the Zacks Consensus Estimate of $54 million. Sales rose 59.3% from the year-ago quarter’s $35.9 million. The top line primarily comprised significant sales of Firdapse (amifampridine), approved for the treatment of Lambert-Eaton myasthenic syndrome (“LEMS”) and nominal license and other revenues.
Quarter in Detail
Firdapse generated sales worth $57.2 million in the third quarter, up 59.3% 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 $0.07 million in the reported quarter, down from $2.73 million in the prior-year quarter.
Research and development expenses were $8.3 million, up from the $4.5 million reported in the year-ago quarter.
Selling, general and administrative expenses totaled $14.2 million, up from $12.2 million reported in the year-ago quarter.
As of Sep 30, 2022, CPRX had cash, cash equivalents and investments worth $256.1 million compared with $220.8 million as of Jun 30, 2022.
2022 Guidance
Catalyst increased the revenue guidance it provided earlier this year.
The company now expects total revenues in the range of $205-$210 million, suggesting a 46-49% increase from 2021 levels. The company previously expected revenues in the range of $195-$205 million, suggesting a 38-45% increase from 2021 levels.
The guidance assumes continued recovery in macroeconomic and healthcare activity throughout 2022 from the COVID pandemic.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
The consensus estimate has shifted 6.25% due to these changes.
VGM Scores
Currently, Catalyst has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Following the exact same course, 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 A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Catalyst 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
Catalyst is part of the Zacks Medical - Drugs industry. Over the past month, Ironwood Pharmaceuticals (IRWD - Free Report) , a stock from the same industry, has gained 1.7%. The company reported its results for the quarter ended September 2022 more than a month ago.
Ironwood reported revenues of $108.64 million in the last reported quarter, representing a year-over-year change of +4.7%. EPS of $0.28 for the same period compares with $0.33 a year ago.
Ironwood is expected to post earnings of $0.30 per share for the current quarter, representing a year-over-year change of +11.1%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Ironwood. Also, the stock has a VGM Score of A.
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Catalyst (CPRX) Up 8.9% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Catalyst Pharmaceutical (CPRX - Free Report) . Shares have added about 8.9% 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 its most recent earnings report in order to get a better handle on the important drivers.
Catalyst's Earnings & Revenues Surpass Estimates in Q3
Catalyst reported earnings of 20 cents per share for the third quarter of 2022, beating the Zacks Consensus Estimate of 19 cents. Earnings were also higher than our estimate of 19 cents. The company reported earnings of 10 cents in the year-ago quarter.
Adjusted earnings (adjusted for stock-based compensation, depreciation, amortization and tax provision) came in at 26 cents per share in the reported quarter compared with 14 cents a year ago.
Total revenues amounted to $57.2 million, beating the Zacks Consensus Estimate of $54 million. Sales rose 59.3% from the year-ago quarter’s $35.9 million. The top line primarily comprised significant sales of Firdapse (amifampridine), approved for the treatment of Lambert-Eaton myasthenic syndrome (“LEMS”) and nominal license and other revenues.
Quarter in Detail
Firdapse generated sales worth $57.2 million in the third quarter, up 59.3% 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 $0.07 million in the reported quarter, down from $2.73 million in the prior-year quarter.
Research and development expenses were $8.3 million, up from the $4.5 million reported in the year-ago quarter.
Selling, general and administrative expenses totaled $14.2 million, up from $12.2 million reported in the year-ago quarter.
As of Sep 30, 2022, CPRX had cash, cash equivalents and investments worth $256.1 million compared with $220.8 million as of Jun 30, 2022.
2022 Guidance
Catalyst increased the revenue guidance it provided earlier this year.
The company now expects total revenues in the range of $205-$210 million, suggesting a 46-49% increase from 2021 levels. The company previously expected revenues in the range of $195-$205 million, suggesting a 38-45% increase from 2021 levels.
The guidance assumes continued recovery in macroeconomic and healthcare activity throughout 2022 from the COVID pandemic.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
The consensus estimate has shifted 6.25% due to these changes.
VGM Scores
Currently, Catalyst has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Following the exact same course, 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 A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Catalyst 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
Catalyst is part of the Zacks Medical - Drugs industry. Over the past month, Ironwood Pharmaceuticals (IRWD - Free Report) , a stock from the same industry, has gained 1.7%. The company reported its results for the quarter ended September 2022 more than a month ago.
Ironwood reported revenues of $108.64 million in the last reported quarter, representing a year-over-year change of +4.7%. EPS of $0.28 for the same period compares with $0.33 a year ago.
Ironwood is expected to post earnings of $0.30 per share for the current quarter, representing a year-over-year change of +11.1%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Ironwood. Also, the stock has a VGM Score of A.