A month has gone by since the last earnings report for Esperion Therapeutics (
ESPR Quick Quote ESPR - Free Report) . Shares have lost about 10.6% 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 catalysts.
Esperion Q2 Earnings and Revenues Beat Estimates
Esperion incurred a loss of 46 cents per share in the second quarter of 2023, narrower than the Zacks Consensus Estimate of a loss of 63 cents. The company incurred a loss of $1.05 per share in the year-ago period.
Esperion generated revenues of $25.8 million, up 37.2% year over year. The reported figure beat the Zacks Consensus Estimate of $25 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 $20.3 million in the second quarter, up approximately 49% year over year driven by continued prescription growth. Product revenues were up 19.4% sequentially. The top line beat the Zacks Consensus Estimate and our model estimate of $18.2 million and $18.5 million, respectively.
The drugs’ retail prescriptions grew 26% in the country. Additionally, new-to-brand subscriptions grew 60% from the previous quarter’s level.
Esperion recorded collaboration revenues, which include combined royalty and partner revenues, of $5.5 million during the reported quarter, up 3.8% year over year. The increase was driven by higher royalty revenues, which were partially offset by the unfavorable timing of tablet shipments to some international partners.
Additionally, collaboration revenues missed both the Zacks Consensus Estimate and our model estimate of $6.64 million and $6.4 million, respectively.
Research and development (R&D) expenses declined 31.8% from the year-ago period’s level to $22.1 million due to lower costs related to the announcement and presentation of Esperion’s CLEAR Outcomes study results, earlier this March.
Selling, general and administrative (SG&A) expenses increased 14.9% year over year to $34 million, reflecting the upfront training expenses for the contract sales force as well as higher legal costs.
Esperion reiterated its financial outlook for 2023. The company still expects operating expenses in the range of $225-$245 million, including $25 million in non-cash expenses related to stock compensation. Guidance for total operating expenses 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 review.
The consensus estimate has shifted 10.19% due to these changes.
Currently, Esperion Therapeutics has a nice Growth Score of B, a grade with the same score on the momentum front. However, the stock was allocated a grade of F on the value side, putting it in the fifth 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 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.