We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
United Therapeutics (UTHR) Down 13% Since Last Earnings Report: Can It Rebound?
Read MoreHide Full Article
It has been about a month since the last earnings report for United Therapeutics (UTHR - Free Report) . Shares have lost about 13% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is United Therapeutics due for a breakout? 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.
Q4 Earnings & Sales Miss Estimates
United Therapeutics reported fourth-quarter 2022 adjusted earnings of $2.67 per share which missed the Zacks Consensus Estimate and our model estimate of $4.12 and $3.73, respectively. Earnings rose 13.6% year over year.
Revenues in the reported quarter were $491.5 million, which slightly missed the Zacks Consensus Estimate of $492.4 million. Revenues rose 18% year over year, driven by Tyvaso. The reported revenues, however, beat our model estimate of $475.6 million.
Quarter in Detail
Tyvaso sales totaled $242.3 million, up 46% year over year, gaining from higher sales volume driven by launch of Tyvaso DPI formulation in June 2022. Net sales also rose on account of increased product uptake following label expansion of the drug in PH-ILD indication.
United Therapeutics developed the Tyvaso DPI in partnership with MannKind Corporation. Per an existing commercial supply agreement, MannKind Corporation is responsible for manufacturing and supplying Tyvaso DPI to United Therapeutics.
Remodulin (including Remunity Pump) sales were up 4% year over year to $122.5 million, while Orenitram sales rose 5% year over year, amounting to $75.8 million.
Unituxin sales reached $36.7 million, down 27% year over year on account of lower sales volume during the fourth quarter.
Adcirca sales were $10.4 million, up 28% year over year.
Research and development expenses were $93.9 million in the quarter, up 13% year over year. Selling, general and administrative expenses rose 28% to $163.2 million in the quarter.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -8.13% due to these changes.
VGM Scores
Currently, United Therapeutics has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. 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 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, United Therapeutics has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
United Therapeutics (UTHR) Down 13% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for United Therapeutics (UTHR - Free Report) . Shares have lost about 13% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is United Therapeutics due for a breakout? 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.
Q4 Earnings & Sales Miss Estimates
United Therapeutics reported fourth-quarter 2022 adjusted earnings of $2.67 per share which missed the Zacks Consensus Estimate and our model estimate of $4.12 and $3.73, respectively. Earnings rose 13.6% year over year.
Revenues in the reported quarter were $491.5 million, which slightly missed the Zacks Consensus Estimate of $492.4 million. Revenues rose 18% year over year, driven by Tyvaso. The reported revenues, however, beat our model estimate of $475.6 million.
Quarter in Detail
Tyvaso sales totaled $242.3 million, up 46% year over year, gaining from higher sales volume driven by launch of Tyvaso DPI formulation in June 2022. Net sales also rose on account of increased product uptake following label expansion of the drug in PH-ILD indication.
United Therapeutics developed the Tyvaso DPI in partnership with MannKind Corporation. Per an existing commercial supply agreement, MannKind Corporation is responsible for manufacturing and supplying Tyvaso DPI to United Therapeutics.
Remodulin (including Remunity Pump) sales were up 4% year over year to $122.5 million, while Orenitram sales rose 5% year over year, amounting to $75.8 million.
Unituxin sales reached $36.7 million, down 27% year over year on account of lower sales volume during the fourth quarter.
Adcirca sales were $10.4 million, up 28% year over year.
Research and development expenses were $93.9 million in the quarter, up 13% year over year. Selling, general and administrative expenses rose 28% to $163.2 million in the quarter.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -8.13% due to these changes.
VGM Scores
Currently, United Therapeutics has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. 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 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, United Therapeutics has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.