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Amarin's (AMRN) Q4 Earnings and Revenues Surpass Estimates
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Amarin Corporation Plc (AMRN - Free Report) reported break-even quarterly earnings in fourth-quarter 2023 against the Zacks Consensus Estimate of a loss of 4 cents per share. The company recorded adjusted earnings of 2 cents in the year-ago quarter.
Adjusted earnings exclude non-cash stock-based compensation, restructuring inventory and other restructuring expenses.
Total revenues were $74.7 million, beating the Zacks Consensus Estimate of $72.5 million. However, revenues were down 17% from the year-ago quarter’s levels, owing to lower product revenues.
Despite encouraging earnings results, shares of Amarin fell 18.9% following the earnings announcement. Year to date, the stock has risen 21.8% compared with the industry’s 3.7% growth.
Image Source: Zacks Investment Research
Quarter in Detail
Net product revenues in the fourth quarter were $70.6 million, down 21% year over year.
U.S. product revenues from Vascepa, the company’s sole marketed drug, totaled $64.9 million, down 26% from the year-ago quarter’s level as rising generic competition hurt sales volumes in the United States. However, the drug’s U.S. sales marginally beat our model estimate of $64.4 million.
Product revenues from Vazkepa (Vascepa’s brand name in Europe) in the European market totaled $1.5 million compared with $0.8 million in the previous quarter. Early launches are currently underway in several European countries, including the U.K. and Spain.
Licensing and royalty revenues, comprising royalties from partners in Canada, the China region and the Middle East, came in at $4.2 million compared with $0.7 million in the year-ago period. The figure beat our model estimate of $0.9 million.
Selling, general and administrative expenses (SG&A) totaled $43.9 million, down almost 36% year over year. This downside was due to the company’s cost reduction and restructuring plans.
Last year in July, Amarin implemented an organizational restructuring plan to strengthen its existing cash runway and curb cash burn. It reduced its current workforce in non-sales positions by 30%. It plans to save around $40 million annually in operating expenses through restructuring.
Research and development (R&D) expenses amounted to $5.8 million, up almost 11% year over year.
Amarin ended the fourth quarter with cash and investments of $321 million, in line with the figure reported in the quarter ended September 2023. The company believes that its current cash is enough to fund the ongoing operations and support continued operations, including any share repurchases.
Full-Year Results
Amarin generated total revenues of $306.9 million in 2023, down 17% year over year.
The company reported full-year 2023 adjusted earnings of 3 cents against the previous year’s adjusted loss of 12 cents.
Recent Updates
Amarin initiated a shareholder approval process to execute a share repurchase program of up to $50 million by the end of second-quarter 2024.
Currently, Amarin has a Zacks Rank #3 (Hold). Some better-ranked stocks in the overall healthcare sector include Adicet Bio (ACET - Free Report) , ADMA Biologics (ADMA - Free Report) and Puma Biotechnology (PBYI - Free Report) . While Puma Biotechnology and ADMA each sport a Zacks Rank #1 (Strong Buy) at present, Adicet carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, estimates for ADMA Biologics’ 2024 EPS have risen from 18 cents to 22 cents. Year to date, shares of ADMA have risen 18.6%.
Earnings of ADMA Biologics beat estimates in three of the last four quarters while meeting the same on one occasion. ADMA delivered a four-quarter average earnings surprise of 63.57%.
In the past 60 days, estimates for Puma Biotechnology’s 2024 earnings per share (EPS) have risen from 69 cents to 71 cents. Year to date, shares of PBYI have rallied 43.7%.
Earnings of Puma Biotechnology beat estimates in three of the last four quarters while missing the same on one occasion. Puma delivered a four-quarter average earnings surprise of 76.55%.
In the past 60 days, estimates for Adicet Bio’s 2024 loss per share have improved from $2.11 to $1.81. Year to date, shares of ACET have rallied 24.3%.
Earnings of Adicet Bio beat estimates in two of the trailing four quarters while missing the mark on the other two occasions. On average, Adicet came up with a four-quarter negative earnings surprise of 8.36%.
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Amarin's (AMRN) Q4 Earnings and Revenues Surpass Estimates
Amarin Corporation Plc (AMRN - Free Report) reported break-even quarterly earnings in fourth-quarter 2023 against the Zacks Consensus Estimate of a loss of 4 cents per share. The company recorded adjusted earnings of 2 cents in the year-ago quarter.
Adjusted earnings exclude non-cash stock-based compensation, restructuring inventory and other restructuring expenses.
Total revenues were $74.7 million, beating the Zacks Consensus Estimate of $72.5 million. However, revenues were down 17% from the year-ago quarter’s levels, owing to lower product revenues.
Despite encouraging earnings results, shares of Amarin fell 18.9% following the earnings announcement. Year to date, the stock has risen 21.8% compared with the industry’s 3.7% growth.
Image Source: Zacks Investment Research
Quarter in Detail
Net product revenues in the fourth quarter were $70.6 million, down 21% year over year.
U.S. product revenues from Vascepa, the company’s sole marketed drug, totaled $64.9 million, down 26% from the year-ago quarter’s level as rising generic competition hurt sales volumes in the United States. However, the drug’s U.S. sales marginally beat our model estimate of $64.4 million.
Product revenues from Vazkepa (Vascepa’s brand name in Europe) in the European market totaled $1.5 million compared with $0.8 million in the previous quarter. Early launches are currently underway in several European countries, including the U.K. and Spain.
Licensing and royalty revenues, comprising royalties from partners in Canada, the China region and the Middle East, came in at $4.2 million compared with $0.7 million in the year-ago period. The figure beat our model estimate of $0.9 million.
Selling, general and administrative expenses (SG&A) totaled $43.9 million, down almost 36% year over year. This downside was due to the company’s cost reduction and restructuring plans.
Last year in July, Amarin implemented an organizational restructuring plan to strengthen its existing cash runway and curb cash burn. It reduced its current workforce in non-sales positions by 30%. It plans to save around $40 million annually in operating expenses through restructuring.
Research and development (R&D) expenses amounted to $5.8 million, up almost 11% year over year.
Amarin ended the fourth quarter with cash and investments of $321 million, in line with the figure reported in the quarter ended September 2023. The company believes that its current cash is enough to fund the ongoing operations and support continued operations, including any share repurchases.
Full-Year Results
Amarin generated total revenues of $306.9 million in 2023, down 17% year over year.
The company reported full-year 2023 adjusted earnings of 3 cents against the previous year’s adjusted loss of 12 cents.
Recent Updates
Amarin initiated a shareholder approval process to execute a share repurchase program of up to $50 million by the end of second-quarter 2024.
Amarin Corporation PLC Price
Amarin Corporation PLC price | Amarin Corporation PLC Quote
Zacks Rank & Key Picks
Currently, Amarin has a Zacks Rank #3 (Hold). Some better-ranked stocks in the overall healthcare sector include Adicet Bio (ACET - Free Report) , ADMA Biologics (ADMA - Free Report) and Puma Biotechnology (PBYI - Free Report) . While Puma Biotechnology and ADMA each sport a Zacks Rank #1 (Strong Buy) at present, Adicet carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, estimates for ADMA Biologics’ 2024 EPS have risen from 18 cents to 22 cents. Year to date, shares of ADMA have risen 18.6%.
Earnings of ADMA Biologics beat estimates in three of the last four quarters while meeting the same on one occasion. ADMA delivered a four-quarter average earnings surprise of 63.57%.
In the past 60 days, estimates for Puma Biotechnology’s 2024 earnings per share (EPS) have risen from 69 cents to 71 cents. Year to date, shares of PBYI have rallied 43.7%.
Earnings of Puma Biotechnology beat estimates in three of the last four quarters while missing the same on one occasion. Puma delivered a four-quarter average earnings surprise of 76.55%.
In the past 60 days, estimates for Adicet Bio’s 2024 loss per share have improved from $2.11 to $1.81. Year to date, shares of ACET have rallied 24.3%.
Earnings of Adicet Bio beat estimates in two of the trailing four quarters while missing the mark on the other two occasions. On average, Adicet came up with a four-quarter negative earnings surprise of 8.36%.