Back to top

Tale of the Tape

Zacks Equity Research

Horizon (HZNP) Misses Q3 Earnings, Revenue Estimates
November 07, 2016

HZNP

Trades from $3

Dublin, Ireland-based Horizon Pharma plc (HZNP - Free Report) is a biopharmaceutical focused on identifying, developing, acquiring and commercializing products that address unmet therapeutic needs in arthritis, pain, inflammatory and orphan diseases. The company operates through three business units – Orphan, Primary Care and Rheumatology. Its portfolio currently comprises nine marketed products. Key products include Actimmune (chronic granulomatous disease and severe malignant osteopetrosis) and Duexis (signs and symptoms of osteoarthritis and rheumatoid arthritis) among others.

The company has been actively pursuing acquisitions to expand and diversify its portfolio. In this scenario, investor focus remains on the company’s performance apart from the usual top-and bottom-line numbers.

Horizon’s performance has been far from encouraging with the company missing earnings estimates thrice and surpassing the same in one out of the four trailing quarters. Overall, the company has an average negative earnings surprise of 1.85%.

HORIZON PHARMA Price and EPS Surprise

Currently, Horizon Pharma has a Zacks Rank #3 (Hold), but that could definitely change following the company’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: Horizon Pharma’s third-quarter 2016 earnings fell short of expectations. Our consensus called for EPS of 63 cents, and the company reported EPS of 57 cents (incluidng the impact of share-based compensation expense and tax adjustments).

Revenues: Revenues in the reported quarter also came in below expectations. Horizon Pharma posted revenues of $208.7 million (including the impact of the $65 million settlement with Express Scripts), which missed our consensus estimate of $273.1 million.

Key Stats: All three business units – Orphan, Primary Care and Rheumatology – performed well in the third quarter of 2016. Key products including Actimmune and Ravicti among others drove top-line growth.

2016 Outlook Intact: Horizon Pharma reiterated its net sales and adjusted EBITDA expectations for 2016. The company continues to expect net sales to be approximately $980 to $985 million, including the impact of the settlement. Excluding the impact of the settlement, the company still anticipates net sales in the range of $1.045 billion to $1.050 billion. The Zacks Consensus Estimate for revenues currently stands at $1.04 billion.

It still expects adjusted EBITDA in the range of $450 million to $460 million, which includes the acquisition of Raptor Pharmaceutical Corp.

Confidential from Zacks

Beyond this Tale of the Tape, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>

In-Depth Zacks Research for the Tickers Above

HORIZON PHARMA (HZNP) - FREE report >>