On Monday, shares of biopharmaceutical company Horizon Pharma are cratering, down over 34% to $10.09 per share in afternoon trading after they reported first-quarter financial results that missed expectations.
Horizon reported earnings of 21 cents per share, missing the Zacks Consensus Estimate of 25 cents per share, marking the fourth consecutive earnings miss. Overall, Horizon has a negative average earnings surprise of 11.56%.
Revenues of $220.9 million also fell short of expectations, missing our consensus estimate of $253 million but increasing 7.9% year-over-year thanks to strong growth in its orphan and rheumatology business units.
Non-GAAP gross profit was 88.5% compared to 90.6% in the year-ago period, while non-GAAP total operating expenses were 64.8% of net sales. Adjusted EBITDA was $51.9 million.
During the first quarter, Horizon’s Orphan business unit, which includes treatments RAVICTI, PROCYSBI, and ACTIMMUNE, jumped 70% compared to the first quarter of 2016. Sales in its Rheumatology segment increased 96% to $31.6 million, mostly driven by KRYSTEXXA, a treatment for refractory chronic gout.
Looking ahead, Horizon has lowered its fiscal 2017 outlook as a result of its weaker-than-expected earnings performance. The company now expects net sales to fall in the range of $1.0 billion and $1.035 billion, down from its prior forecast between $1.240 billion and $1.290 billion. Analysts are currently expecting $1.26 billion.
HZNP is a #3 (Hold) on the Zacks Rank, with a VGM score of ‘A.’ Year-to-date, shares of Horizon have lost about 3.7% in value.
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Here's Why Shares of Horizon Pharma (HZNP) are Cratering Today
On Monday, shares of biopharmaceutical company Horizon Pharma are cratering, down over 34% to $10.09 per share in afternoon trading after they reported first-quarter financial results that missed expectations.
Horizon reported earnings of 21 cents per share, missing the Zacks Consensus Estimate of 25 cents per share, marking the fourth consecutive earnings miss. Overall, Horizon has a negative average earnings surprise of 11.56%.
Revenues of $220.9 million also fell short of expectations, missing our consensus estimate of $253 million but increasing 7.9% year-over-year thanks to strong growth in its orphan and rheumatology business units.
Non-GAAP gross profit was 88.5% compared to 90.6% in the year-ago period, while non-GAAP total operating expenses were 64.8% of net sales. Adjusted EBITDA was $51.9 million.
During the first quarter, Horizon’s Orphan business unit, which includes treatments RAVICTI, PROCYSBI, and ACTIMMUNE, jumped 70% compared to the first quarter of 2016. Sales in its Rheumatology segment increased 96% to $31.6 million, mostly driven by KRYSTEXXA, a treatment for refractory chronic gout.
Looking ahead, Horizon has lowered its fiscal 2017 outlook as a result of its weaker-than-expected earnings performance. The company now expects net sales to fall in the range of $1.0 billion and $1.035 billion, down from its prior forecast between $1.240 billion and $1.290 billion. Analysts are currently expecting $1.26 billion.
HZNP is a #3 (Hold) on the Zacks Rank, with a VGM score of ‘A.’ Year-to-date, shares of Horizon have lost about 3.7% in value.
Horizon Pharma PLC Price, Consensus and EPS Surprise
Horizon Pharma PLC Price, Consensus and EPS Surprise | Horizon Pharma PLC Quote
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If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today, Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>