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Alkermes (ALKS) to Report Q2 Earnings: What's in the Cards?
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Alkermes (ALKS - Free Report) is scheduled to report second-quarter 2023 results on Jul 26.
Its earnings surprise history has been decent so far. The bottom line surpassed estimates in three of the trailing four quarters and met the mark in one, delivering an average surprise of 90.83%.
Shares of Alkermes have risen 22.4% year to date against the industry’s 8.6% decline.
Image Source: Zacks Investment Research
Let's see how things might have shaped up in the soon-to-be-reported quarter.
Factors to Consider
Alkermes’ revenue growth in the second quarter is likely to have been driven by the rapid uptake in the commercialization of therapies targeting major central nervous system (CNS) disorders, including schizophrenia, depression, addiction and multiple sclerosis.
The company derives revenues on net sales of its proprietary products — Vivitrol (alcohol and opioid dependence), Aristada (schizophrenia) and Lybalvi (schizophrenia and bipolar I disorder) — and manufacturing and/or royalty revenues on net sales of products commercialized by its partners.
Alkermes’ newly approved drug, Lybalvi’s sales are expected to have been boosted by robust demand-led growth and increased patient share. The drug witnessed a 173% improvement in sales in the first quarter and the momentum is likely to have continued in the to-be-reported quarter. The Zacks Consensus Estimate for Lybalvi’s sales is pegged at $46.14 million.
Other growth drivers like Vivitrol and Aristada might have had maintained the growth momentum for Alkermes. Both these drugs experienced more than 10% growth in sales in the first quarter. This trend is likely to have prevailed in the second quarter.
The Zacks Consensus Estimate for Alkermes’ revenues from net product sales is pegged at $228.26 million.
Other Updates
Alkermes is making progress in separating its oncology business into a new, publicly-traded company called Mural Oncology plc. The separation will allow the company to focus on developing therapies for neurological conditions and improving profitability. Investors can expect an update on the separation as the company expects to complete the separation in the second half of 2023.
In June, Alkermes received a final award in its arbitration proceedings with Janssen Pharmaceuticals, a subsidiary of J&J (JNJ - Free Report) . The final award confirms previous findings by the tribunal that Janssen can terminate license agreements but must pay royalties to Alkermes for products developed during the agreements. Royalties for Invega Sustenna will end in August 2024, while that for Invega Trinza and Invega Hafyera in 2030 and Cabenuva in 2036.
ALKS is entitled to back royalties and interests of around $194 million for 2022 sales, leading to a revised financial outlook for 2023. Total revenues are now expected in the range of $1,550-$1,680 million compared with the previous guidance of $1,130-$1,250 million.
Our proven model does not predict an earnings beat for Alkermes this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. Unfortunately, that is not the case here, as you will see below.
Earnings ESP: Alkermes has an Earnings ESP of -7.45% as the Most Accurate Estimate of 29 cents per share is lower than the Zacks Consensus Estimate of 31 cents. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Zacks Rank: Alkermes currently sports a Zacks Rank #1.
Stocks to Consider
Here are a few stocks worth considering from the overall healthcare space, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
ACAD’s shares have rallied 96.4% in the year-to-date period. Its earnings beat estimates in two of the trailing four quarters and missed the mark in the other two, delivering an average negative surprise of 2.75%. The company will report second-quarter earnings on Aug 2, after market close.
ADC Therapeutics (ADCT - Free Report) has an Earnings ESP of +52.73% and a Zacks Rank #2 at present.
ADCT’s shares have lost 60.9% year to date. Its earnings beat estimates in three of the trailing four quarters and missed the mark in one, delivering an average surprise of 10.7%.
Image: Bigstock
Alkermes (ALKS) to Report Q2 Earnings: What's in the Cards?
Alkermes (ALKS - Free Report) is scheduled to report second-quarter 2023 results on Jul 26.
Its earnings surprise history has been decent so far. The bottom line surpassed estimates in three of the trailing four quarters and met the mark in one, delivering an average surprise of 90.83%.
Shares of Alkermes have risen 22.4% year to date against the industry’s 8.6% decline.
Image Source: Zacks Investment Research
Let's see how things might have shaped up in the soon-to-be-reported quarter.
Factors to Consider
Alkermes’ revenue growth in the second quarter is likely to have been driven by the rapid uptake in the commercialization of therapies targeting major central nervous system (CNS) disorders, including schizophrenia, depression, addiction and multiple sclerosis.
The company derives revenues on net sales of its proprietary products — Vivitrol (alcohol and opioid dependence), Aristada (schizophrenia) and Lybalvi (schizophrenia and bipolar I disorder) — and manufacturing and/or royalty revenues on net sales of products commercialized by its partners.
Alkermes’ newly approved drug, Lybalvi’s sales are expected to have been boosted by robust demand-led growth and increased patient share. The drug witnessed a 173% improvement in sales in the first quarter and the momentum is likely to have continued in the to-be-reported quarter. The Zacks Consensus Estimate for Lybalvi’s sales is pegged at $46.14 million.
Other growth drivers like Vivitrol and Aristada might have had maintained the growth momentum for Alkermes. Both these drugs experienced more than 10% growth in sales in the first quarter. This trend is likely to have prevailed in the second quarter.
The Zacks Consensus Estimate for Alkermes’ revenues from net product sales is pegged at $228.26 million.
Other Updates
Alkermes is making progress in separating its oncology business into a new, publicly-traded company called Mural Oncology plc. The separation will allow the company to focus on developing therapies for neurological conditions and improving profitability. Investors can expect an update on the separation as the company expects to complete the separation in the second half of 2023.
In June, Alkermes received a final award in its arbitration proceedings with Janssen Pharmaceuticals, a subsidiary of J&J (JNJ - Free Report) . The final award confirms previous findings by the tribunal that Janssen can terminate license agreements but must pay royalties to Alkermes for products developed during the agreements. Royalties for Invega Sustenna will end in August 2024, while that for Invega Trinza and Invega Hafyera in 2030 and Cabenuva in 2036.
ALKS is entitled to back royalties and interests of around $194 million for 2022 sales, leading to a revised financial outlook for 2023. Total revenues are now expected in the range of $1,550-$1,680 million compared with the previous guidance of $1,130-$1,250 million.
Alkermes plc Price and EPS Surprise
Alkermes plc price-eps-surprise | Alkermes plc Quote
What Our Zacks Model Unveils
Our proven model does not predict an earnings beat for Alkermes this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. Unfortunately, that is not the case here, as you will see below.
Earnings ESP: Alkermes has an Earnings ESP of -7.45% as the Most Accurate Estimate of 29 cents per share is lower than the Zacks Consensus Estimate of 31 cents. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Zacks Rank: Alkermes currently sports a Zacks Rank #1.
Stocks to Consider
Here are a few stocks worth considering from the overall healthcare space, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
ACADIA Pharmaceuticals (ACAD - Free Report) ) has an Earnings ESP of +38.26% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
ACAD’s shares have rallied 96.4% in the year-to-date period. Its earnings beat estimates in two of the trailing four quarters and missed the mark in the other two, delivering an average negative surprise of 2.75%. The company will report second-quarter earnings on Aug 2, after market close.
ADC Therapeutics (ADCT - Free Report) has an Earnings ESP of +52.73% and a Zacks Rank #2 at present.
ADCT’s shares have lost 60.9% year to date. Its earnings beat estimates in three of the trailing four quarters and missed the mark in one, delivering an average surprise of 10.7%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.