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Ardelyx (ARDX) Moves 16.0% Higher: Will This Strength Last?

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Ardelyx (ARDX - Free Report) shares soared 16% in the last trading session to close at $5.88. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 2.9% loss over the past four weeks.

The stock rallied after the company announced preliminary total U.S. net product sales of $319 million in 2024, backed by growing demand for its two drugs, Ibsrela and Xphozah. Ibsrela sales in the fourth quarter of 2024 are expected to be $54 million, bringing the full-year number to $158 million. Xphozah sales in the fourth quarter of 2024 are expected to be $57 million, adding up to approximately $161 million in 2024. In 2025, Ardelyx expects Ibsrela sales to be between $240 and $250 million.

This biotechnology company is expected to post quarterly earnings of $0.01 per share in its upcoming report, which represents a year-over-year change of +108.3%. Revenues are expected to be $108.51 million, up 215.8% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Ardelyx, the consensus EPS estimate for the quarter has been revised 24.1% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on ARDX going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Ardelyx is part of the Zacks Medical - Drugs industry. Esperion Therapeutics (ESPR - Free Report) , another stock in the same industry, closed the last trading session 2.6% lower at $2.28. ESPR has returned 4% in the past month.

Esperion Therapeutics' consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.12. Compared to the company's year-ago EPS, this represents a change of +76%. Esperion Therapeutics currently boasts a Zacks Rank of #3 (Hold).


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