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Why Is Alkermes (ALKS) Down 1.3% Since Last Earnings Report?
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It has been about a month since the last earnings report for Alkermes (ALKS - Free Report) . Shares have lost about 1.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Alkermes 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.
Alkermes Down Despite Q3 Earnings & Revenue Beat
Alkermes reported third-quarter 2023 adjusted earnings of 64 cents per share, which comprehensively beat the Zacks Consensus Estimate of 44 cents. The company had reported adjusted earnings of 2 cents per share in the year-ago quarter.
The company’s revenues of $380.9 million surged 50.9% from the year-ago quarter owing to the strong performance of the company’s proprietary products portfolio. The top line also beat the Zacks Consensus Estimate of $366 million.
Quarter in Detail
Alkermes derives revenues on net sales of its proprietary products — Vivitrol, Aristada and Lybalvi — and manufacturing and/or royalty revenues on net sales of products commercialized by its partners.
Total manufacturing and royalty revenues increased 181.8% year over year to $149.1 million owing to the reinstatement of royalties on sales of long-acting Invega in the United States by Janssen, a subsidiary of J&J.
Manufacturing and royalty revenues from Vumerity were up 31.5% year over year to $34.6 million. Royalty revenues from Vumerity surpassed the Zacks Consensus Estimate and our model estimate of $33.2 and $29.5 million, respectively.
Sales of the proprietary drug, Vivitrol, increased around 3% year over year to $99.3 million, driven primarily by growth in the alcohol dependence indication. The figure missed the Zacks Consensus Estimate of $104 million and our model estimate of $104.7 million.
Aristada sales increased 8% year over year to $81.8 million, driven primarily by higher underlying demand. The figure missed the Zacks Consensus Estimate and our model estimate of $85 million and $84.5 million, respectively.
Lybalvi generated sales of $50.7 million. Sales of the drug increased 87.1% year over year and 8% sequentially, primarily driven by growth in demand. However, Lybalvi sales missed the Zacks Consensus Estimate and our model estimate of $54 million and $54.6 million, respectively.
Research and development expenses totaled $97.1 million, down 3.3% year over year. The decline was due to reduced expenses for the advancement of clinical studies for nemvaleukin alfa and Lybalvi.
Selling, general and administrative expenses totaled $169.4 million, up 10.8% year over year. This was due to increased investment to support the launch of Lybalvi and certain expenses related to the planned separation of the oncology business.
As of Sep 30, 2023, Alkermes had cash and cash equivalents of $995.6 million compared with $907.2 million as of Jun 30, 2023. Total outstanding debt was $291.4 million as of Sep 30, 2023.
2023 Guidance
The company reiterated its full-year revenue guidance for 2023 that it had issued on Jun 6, 2023. It continues to expect total revenues in the band of $1.55-$1.68 billion.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -27.33% due to these changes.
VGM Scores
Currently, Alkermes has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, 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 A. 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, Alkermes has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Alkermes (ALKS) Down 1.3% Since Last Earnings Report?
It has been about a month since the last earnings report for Alkermes (ALKS - Free Report) . Shares have lost about 1.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Alkermes 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.
Alkermes Down Despite Q3 Earnings & Revenue Beat
Alkermes reported third-quarter 2023 adjusted earnings of 64 cents per share, which comprehensively beat the Zacks Consensus Estimate of 44 cents. The company had reported adjusted earnings of 2 cents per share in the year-ago quarter.
The company’s revenues of $380.9 million surged 50.9% from the year-ago quarter owing to the strong performance of the company’s proprietary products portfolio. The top line also beat the Zacks Consensus Estimate of $366 million.
Quarter in Detail
Alkermes derives revenues on net sales of its proprietary products — Vivitrol, Aristada and Lybalvi — and manufacturing and/or royalty revenues on net sales of products commercialized by its partners.
Total manufacturing and royalty revenues increased 181.8% year over year to $149.1 million owing to the reinstatement of royalties on sales of long-acting Invega in the United States by Janssen, a subsidiary of J&J.
Manufacturing and royalty revenues from Vumerity were up 31.5% year over year to $34.6 million. Royalty revenues from Vumerity surpassed the Zacks Consensus Estimate and our model estimate of $33.2 and $29.5 million, respectively.
Sales of the proprietary drug, Vivitrol, increased around 3% year over year to $99.3 million, driven primarily by growth in the alcohol dependence indication. The figure missed the Zacks Consensus Estimate of $104 million and our model estimate of $104.7 million.
Aristada sales increased 8% year over year to $81.8 million, driven primarily by higher underlying demand. The figure missed the Zacks Consensus Estimate and our model estimate of $85 million and $84.5 million, respectively.
Lybalvi generated sales of $50.7 million. Sales of the drug increased 87.1% year over year and 8% sequentially, primarily driven by growth in demand. However, Lybalvi sales missed the Zacks Consensus Estimate and our model estimate of $54 million and $54.6 million, respectively.
Research and development expenses totaled $97.1 million, down 3.3% year over year. The decline was due to reduced expenses for the advancement of clinical studies for nemvaleukin alfa and Lybalvi.
Selling, general and administrative expenses totaled $169.4 million, up 10.8% year over year. This was due to increased investment to support the launch of Lybalvi and certain expenses related to the planned separation of the oncology business.
As of Sep 30, 2023, Alkermes had cash and cash equivalents of $995.6 million compared with $907.2 million as of Jun 30, 2023. Total outstanding debt was $291.4 million as of Sep 30, 2023.
2023 Guidance
The company reiterated its full-year revenue guidance for 2023 that it had issued on Jun 6, 2023. It continues to expect total revenues in the band of $1.55-$1.68 billion.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -27.33% due to these changes.
VGM Scores
Currently, Alkermes has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, 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 A. 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, Alkermes has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.