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Horizon Therapeutics (HZNP) Down 0.9% Since Last Earnings Report: Can It Rebound?
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A month has gone by since the last earnings report for Horizon Therapeutics . Shares have lost about 0.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Horizon 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.
Horizon’s Q4 Earnings and Revenues Surpass Estimates
Horizon Therapeutics plc reported fourth-quarter 2022 adjusted earnings of $1.21 per share, which beat the Zacks Consensus Estimate of $1.09. The company reported adjusted earnings of $1.41 per share in the year-ago quarter.
Quarterly revenues of $942 million declined 7% year over year, owing to lower sales in the Inflammation segment and lower sales growth of Tepezza, which is approved for treating thyroid eye disease. Revenues surpassed the Zacks Consensus Estimate of $926 million.
Quarter in Detail
Horizon reported financial results in the single segment, owing to the wind-down of the inflammation business, beginning this quarter.
In the unified segment, Tepezza sales construed 52.4% of the net sales amounting to $493.5 million, which missed the Zacks Consensus Estimate of $500 million.
Krystexxa sales rose 27% year over year to $216.1 million.
Ravicti sales were $87.5 million in the quarter, up 18% year over year.
Procysbi sales were $54.9 million in the quarter, up 16% year over year.
Uplizna sales were $41.8 million in the quarter, up 62% year over year.
Actimmune sales were $30.1 million in the quarter, down 1% year over year.
Research and development expenses were $117.5 million, up from $101.2 million in the year-ago quarter. Selling, general and administrative expenses were $372.5 million, down from $399 million in the year-ago quarter.
The company had cash, cash equivalents and investments worth $2.35 billion as of Dec 31, 2022, compared with $2.13 billion as of Sep 30, 2022.
2022 Results
For 2022, Horizon recorded total sales of $3.63 billion, up 12.5% from last year’s figure, which missed the Zacks Consensus Estimate of $3.98 billion.
Adjust earnings per share for the year ended December 2022 was $4.86 per share, up from $4.76 per share in the year-ago period, which also beat the Zacks Consensus Estimate, pegged at $4.76 per share.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
The consensus estimate has shifted 9.62% due to these changes.
VGM Scores
Currently, Horizon Therapeutics has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, 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 C. 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 this revision looks promising. It comes with little surprise Horizon Therapeutics 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
Horizon Therapeutics belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Blueprint Medicines (BPMC - Free Report) , has gained 2.5% over the past month. More than a month has passed since the company reported results for the quarter ended December 2022.
Blueprint Medicines reported revenues of $38.78 million in the last reported quarter, representing a year-over-year change of -63.8%. EPS of -$2.65 for the same period compares with -$0.99 a year ago.
For the current quarter, Blueprint Medicines is expected to post a loss of $2.61 per share, indicating a change of -45.8% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.7% over the last 30 days.
Blueprint Medicines 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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Horizon Therapeutics (HZNP) Down 0.9% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Horizon Therapeutics . Shares have lost about 0.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Horizon 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.
Horizon’s Q4 Earnings and Revenues Surpass Estimates
Horizon Therapeutics plc reported fourth-quarter 2022 adjusted earnings of $1.21 per share, which beat the Zacks Consensus Estimate of $1.09. The company reported adjusted earnings of $1.41 per share in the year-ago quarter.
Quarterly revenues of $942 million declined 7% year over year, owing to lower sales in the Inflammation segment and lower sales growth of Tepezza, which is approved for treating thyroid eye disease. Revenues surpassed the Zacks Consensus Estimate of $926 million.
Quarter in Detail
Horizon reported financial results in the single segment, owing to the wind-down of the inflammation business, beginning this quarter.
In the unified segment, Tepezza sales construed 52.4% of the net sales amounting to $493.5 million, which missed the Zacks Consensus Estimate of $500 million.
Krystexxa sales rose 27% year over year to $216.1 million.
Ravicti sales were $87.5 million in the quarter, up 18% year over year.
Procysbi sales were $54.9 million in the quarter, up 16% year over year.
Uplizna sales were $41.8 million in the quarter, up 62% year over year.
Actimmune sales were $30.1 million in the quarter, down 1% year over year.
Research and development expenses were $117.5 million, up from $101.2 million in the year-ago quarter. Selling, general and administrative expenses were $372.5 million, down from $399 million in the year-ago quarter.
The company had cash, cash equivalents and investments worth $2.35 billion as of Dec 31, 2022, compared with $2.13 billion as of Sep 30, 2022.
2022 Results
For 2022, Horizon recorded total sales of $3.63 billion, up 12.5% from last year’s figure, which missed the Zacks Consensus Estimate of $3.98 billion.
Adjust earnings per share for the year ended December 2022 was $4.86 per share, up from $4.76 per share in the year-ago period, which also beat the Zacks Consensus Estimate, pegged at $4.76 per share.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
The consensus estimate has shifted 9.62% due to these changes.
VGM Scores
Currently, Horizon Therapeutics has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, 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 C. 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 this revision looks promising. It comes with little surprise Horizon Therapeutics 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
Horizon Therapeutics belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Blueprint Medicines (BPMC - Free Report) , has gained 2.5% over the past month. More than a month has passed since the company reported results for the quarter ended December 2022.
Blueprint Medicines reported revenues of $38.78 million in the last reported quarter, representing a year-over-year change of -63.8%. EPS of -$2.65 for the same period compares with -$0.99 a year ago.
For the current quarter, Blueprint Medicines is expected to post a loss of $2.61 per share, indicating a change of -45.8% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.7% over the last 30 days.
Blueprint Medicines 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.