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Ionis Pharmaceuticals (IONS) Down 4.5% Since Last Earnings Report: Can It Rebound?
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A month has gone by since the last earnings report for Ionis Pharmaceuticals (IONS - Free Report) . Shares have lost about 4.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Ionis Pharmaceuticals due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Q3 Earnings & Sales Beat Estimates
Ionis incurred a loss of 95 cents per share for third-quarter 2024, which was narrower than the Zacks Consensus Estimate of a loss of $1.16 per share.
Earnings include compensation expenses related to equity awards. Excluding these special items, adjusted loss per share was 72 cents compared with a loss of 85 cents per share in the year-ago quarter.
Total revenues were $134 million in the third quarter, beating the Zacks Consensus Estimate of $129.0 million. Revenues declined 7% year over year.
Quarter in Detail
Commercial revenues totaled $76 million in the third quarter, down 1.2% year over year. Commercial revenues missed the Zacks Consensus Estimate of $80 million.
Commercial revenues from Spinraza royalties amounted to $57 million, down 15% year over. Spinraza sales, as recorded by Biogen, totaled $381.4 million, down 15% year over year. Spinraza royalties missed the Zacks Consensus Estimate of $62 million.
In the third quarter, Wainua royalty revenues totaled $5 million. As recorded by AstraZeneca, Wainua generated sales of $23 million, up 44% on a sequential basis. Other commercial revenues totaled $14 million compared with $17 million in the year-ago quarter.
Other commercial revenues included revenues from Tegsedi and Waylivra distribution fees and license and royalty revenues. License and royalty revenues also included royalties from Qalsody U.S. product sales.
R&D revenues declined 3.3% year over year to $58 million. R&D revenues beat the Zacks Consensus Estimate of $49.8 million.
Collaborative agreement revenues amounted to $45 million in the quarter compared with $44 million in the year-ago quarter. Joint development revenues for Wainua from partner AstraZeneca totaled $13 million compared with $16 million in the year-ago quarter.
Cost Discussion
Adjusted operating costs declined 4.2% year over year to $250 million due to a one-time cost incurred in the third quarter of 2023. Excluding this one-time cost, operating expenses rose mainly due to higher SG&A costs for go-to-market activities for Wainua, olezarsen and donidalorsen. R&D costs were almost flat in the quarter as several late-stage studies ended.
2024 Guidance
Ionis maintained its financial guidance for 2024. The company expects total revenues to be more than $575 million in 2024. Adjusted operating loss is expected to be less than $475 million. Adjusted operating expenses are expected to increase in the mid-single-digit range year over year in 2024, primarily due to higher SG&A costs. The company expects to end 2024 with $2.2 billion in cash.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
The consensus estimate has shifted 9.03% due to these changes.
VGM Scores
Currently, Ionis Pharmaceuticals has a poor Growth Score of F, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of F on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Ionis Pharmaceuticals has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Ionis Pharmaceuticals belongs to the Zacks Medical - Drugs industry. Another stock from the same industry, Corcept Therapeutics (CORT - Free Report) , has gained 9.4% over the past month. More than a month has passed since the company reported results for the quarter ended September 2024.
Corcept reported revenues of $182.55 million in the last reported quarter, representing a year-over-year change of +47.7%. EPS of $0.41 for the same period compares with $0.28 a year ago.
Corcept is expected to post earnings of $0.37 per share for the current quarter, representing a year-over-year change of +32.1%. Over the last 30 days, the Zacks Consensus Estimate has changed +1.4%.
Corcept has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.
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Ionis Pharmaceuticals (IONS) Down 4.5% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Ionis Pharmaceuticals (IONS - Free Report) . Shares have lost about 4.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Ionis Pharmaceuticals due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Q3 Earnings & Sales Beat Estimates
Ionis incurred a loss of 95 cents per share for third-quarter 2024, which was narrower than the Zacks Consensus Estimate of a loss of $1.16 per share.
Earnings include compensation expenses related to equity awards. Excluding these special items, adjusted loss per share was 72 cents compared with a loss of 85 cents per share in the year-ago quarter.
Total revenues were $134 million in the third quarter, beating the Zacks Consensus Estimate of $129.0 million. Revenues declined 7% year over year.
Quarter in Detail
Commercial revenues totaled $76 million in the third quarter, down 1.2% year over year. Commercial revenues missed the Zacks Consensus Estimate of $80 million.
Commercial revenues from Spinraza royalties amounted to $57 million, down 15% year over. Spinraza sales, as recorded by Biogen, totaled $381.4 million, down 15% year over year. Spinraza royalties missed the Zacks Consensus Estimate of $62 million.
In the third quarter, Wainua royalty revenues totaled $5 million. As recorded by AstraZeneca, Wainua generated sales of $23 million, up 44% on a sequential basis. Other commercial revenues totaled $14 million compared with $17 million in the year-ago quarter.
Other commercial revenues included revenues from Tegsedi and Waylivra distribution fees and license and royalty revenues. License and royalty revenues also included royalties from Qalsody U.S. product sales.
R&D revenues declined 3.3% year over year to $58 million. R&D revenues beat the Zacks Consensus Estimate of $49.8 million.
Collaborative agreement revenues amounted to $45 million in the quarter compared with $44 million in the year-ago quarter. Joint development revenues for Wainua from partner AstraZeneca totaled $13 million compared with $16 million in the year-ago quarter.
Cost Discussion
Adjusted operating costs declined 4.2% year over year to $250 million due to a one-time cost incurred in the third quarter of 2023. Excluding this one-time cost, operating expenses rose mainly due to higher SG&A costs for go-to-market activities for Wainua, olezarsen and donidalorsen. R&D costs were almost flat in the quarter as several late-stage studies ended.
2024 Guidance
Ionis maintained its financial guidance for 2024. The company expects total revenues to be more than $575 million in 2024. Adjusted operating loss is expected to be less than $475 million. Adjusted operating expenses are expected to increase in the mid-single-digit range year over year in 2024, primarily due to higher SG&A costs. The company expects to end 2024 with $2.2 billion in cash.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
The consensus estimate has shifted 9.03% due to these changes.
VGM Scores
Currently, Ionis Pharmaceuticals has a poor Growth Score of F, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of F on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Ionis Pharmaceuticals has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Ionis Pharmaceuticals belongs to the Zacks Medical - Drugs industry. Another stock from the same industry, Corcept Therapeutics (CORT - Free Report) , has gained 9.4% over the past month. More than a month has passed since the company reported results for the quarter ended September 2024.
Corcept reported revenues of $182.55 million in the last reported quarter, representing a year-over-year change of +47.7%. EPS of $0.41 for the same period compares with $0.28 a year ago.
Corcept is expected to post earnings of $0.37 per share for the current quarter, representing a year-over-year change of +32.1%. Over the last 30 days, the Zacks Consensus Estimate has changed +1.4%.
Corcept has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.