It has been about a month since the last earnings report for Esperion Therapeutics (
ESPR Quick Quote ESPR - Free Report) . Shares have lost about 6.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Esperion 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 the most recent earnings report in order to get a better handle on the important drivers.
Esperion Q1 Earnings Miss Estimates, Sales Beat
Esperion reported a first-quarter 2023 loss of 79 cents per share, wider than the Zacks Consensus Estimate of a loss of 65 cents. The company incurred a loss of 93 cents per share in the year-ago period.
Esperion generated revenues of $24.3 million in the reported quarter, up 29.2% year over year. The reported figure beat the Zacks Consensus Estimate of $21 million.
Quarter in Detail
Esperion has two FDA-approved drugs — Nexletol and Nexlizet — in its commercial portfolio. The company records royalties on sales of its drugs in Europe and other ex-U.S. markets.
Product revenues, solely from the United States, totaled $17 million in the first quarter, up approximately 27% year over year. This increase in sales was fueled by retail prescription growth of 15% in the United States. Additionally, new-to-brand subscriptions grew 56% from the previous quarter’s number. Product revenues were up 13.3% sequentially.
Esperion recorded collaboration revenues, which include combined royalty and partner revenues, of $7.3 million during the reported quarter, up 33% year over year. This improvement was due to increased tablet sales to Esperion’s international partners and sales growth within partner territories.
Research and development expenses increased 29% from the year-ago period’s level to $31.4 million. This was due to costs related to the announcement and presentation of Esperion’s CLEAR cardiovascular outcomes (CVOT) study results, along with associated close-out activities and regulatory submission preparation.
Selling, general and administrative expenses decreased 2% year over year to $29.9 million. This reflects the positive impact of its cost-savings programs as part of its transformational plan announced in 2021.
As of Mar 31, 2023, Esperion had cash, cash equivalents, restricted cash and investment securities of $162.3 million compared with $166.9 million as of Dec 31, 2022. This cash is inclusive of the recent $56 million raised in a registered direct offering in March, before deducting placement agencies and related offering expenses.
Esperion reiterated its financial outlook for 2023.
The company still expects operating expenses in the range of $225-$245 million for 2023, including $25 million in non-cash expenses related to stock compensation. The guidance includes $100-$110 million in R&D expenses and $125-$135 million in SG&A expenses.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
Currently, Esperion Therapeutics has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. However, the stock was allocated a grade of F on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Esperion Therapeutics 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
Esperion Therapeutics is part of the Zacks Medical - Drugs industry. Over the past month, United Therapeutics (
UTHR Quick Quote UTHR - Free Report) , a stock from the same industry, has gained 4%. The company reported its results for the quarter ended March 2023 more than a month ago.
United Therapeutics reported revenues of $506.9 million in the last reported quarter, representing a year-over-year change of +9.7%. EPS of $4.86 for the same period compares with $5.03 a year ago.
United Therapeutics is expected to post earnings of $4.45 per share for the current quarter, representing a year-over-year change of +84.7%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.8%.
United Therapeutics has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.