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United Therapeutics (UTHR) Beats Q3 Earnings, Sales Miss

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United Therapeutics Corporation (UTHR - Free Report) reported adjusted earnings of $3.63 per share (including after-tax impact of stock-based compensation expense) for third-quarter 2016 which beat the Zacks Consensus Estimate of $3.47 by 4.61%.

Revenues for the reported quarter increased 5.6% year over year to $408 million but fell short of the Zacks Consensus Estimate of $410 million.

The Quarter in Detail

Revenues in the third quarter increased from the year-ago period due to a rise in the net product sales of Adcirca,Unituxin,Orenitram and Remodulin. This rise was slightly offset by the decline in sales of Tyvaso.

Orenitram reported sales of $40.7 million in the quarter, up 18.3% year over year. Adcirca, reported sales of $96.0 million, up 30.1% year over year. Tyvaso reported sales of $101.8 million, down 16.4% year over year. Remodulin reported sales of $152.4 million, up 1.5% year over year. Unituxin reported sales of $17.3 million, up 268.1% year over year.

Research and development (R&D) expenses for the third quarter increased 378.1% from the year-ago quarter to $45.9 million mainly due to more candidates moving to phase III studies.

Selling, general and administrative (SG&A) expenses too increased 678.6% from the year-ago quarter to $100.1 million, also due to higher share-based compensation expense.

During the quarter, United Therapeutics bought back shares worth $135.8 million under its 500 million stock buyback program. As of Sep 30, $104.5 million worth of shares remained available for additional repurchase.

UTD THERAPEUTIC Price, Consensus and EPS Surprise

 

UTD THERAPEUTIC Price, Consensus and EPS Surprise | UTD THERAPEUTIC Quote

Zacks Rank & Stocks to Consider

United Therapeutics currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the healthcare sector include Infinity Pharmaceuticals, Inc. , BioMarin Pharmaceutical Inc. (BMRN - Free Report) and Exelixis, Inc. (EXEL - Free Report) . Both Infinity and BioMarin sport a Zacks Rank #1 (Strong Buy) whereas Exelixis has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Exelixis’ loss estimates narrowed from 71 cents to 63 cents for 2016 and from 19 cents to earnings of 2 cents for 2017 over the last 60 days. The company has posted positive surprises twice in the four trailing quarters with an average beat of 9.1%. Its share price has skyrocketed over 90% year to date.

BioMarin’s loss estimates narrowed from 28 cents to 25 cents for 2016 and from $1.16 to $1.11 for 2017 over the last 60 days.

Infinity’s loss estimates narrowed from $3.84 to $3.79 for 2016 and remained stable for 2017 over the last 60 days. The company posted positive surprises in all the four trailing quarters with an average beat of 67.62%.

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