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Why Is Ironwood (IRWD) Up 24.9% Since Last Earnings Report?
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It has been about a month since the last earnings report for Ironwood Pharmaceuticals (IRWD - Free Report) . Shares have added about 24.9% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Ironwood due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for Ironwood Pharmaceuticals, Inc. before we dive into how investors and analysts have reacted as of late.
Ironwood Beats on Q3 Earnings & Revenues, Raises 2025 View
Ironwood reported adjusted earnings of 24 cents per share for the third quarter of 2025, which comprehensively beat the Zacks Consensus Estimate of 9 cents. The company had reported earnings of 2 cents per share in the year-ago quarter.
Total revenues in the third quarter were $122.1 million, which also beat the Zacks Consensus Estimate of $68 million. Revenues increased by around 33.3% year over year.
Quarter in Detail
As reported by its partner AbbVie, Ironwood’s marketed product, Linzess, generated net sales of $314.9 million in the United States, up 40% year over year, owing to improved net pricing and strong demand growth. Total prescription demand for Linzess increased 12% year over year.
Ironwood’s share of net profit from the sales of Linzess in the United States (included in collaborative revenues) totaled $119.6 million, reflecting an increase of 35% year over year.
Ironwood's royalties and other revenues were $2.5 million in the third quarter. In the year-ago quarter, the company recorded $2.7 million in royalties and other revenues.
Total cost and expenses (including research and development expenses, selling, general and administrative expenses and restructuring expenses) in the third quarter were $46.6 million, down 29.4% from the year-ago quarter.
Ironwood recorded adjusted EBITDA of $81.8 million in the third quarter, reflecting a significant increase year over year.
As of Sept. 30, 2025, Ironwood had cash and cash equivalents worth $140.4 million compared with $92.9 million as of June 30, 2025.
2025 Guidance
Owing to the strong performance of Linzess during the third quarter, Ironwood raised its full-year 2025 revenue guidance.
The company now expects total revenues in the range of $290-$310 million for 2025, compared with the previous guidance of $260-$290 million.
U.S. sales of Linzess (to be recorded by AbbVie) are now expected to be in the range of $860-$890 million compared with the earlier projection of $800-$850 million.
Ironwood now expects to deliver an adjusted EBITDA of more than $135 million (previously expected to be more than $105 million) in 2025.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -87.5% due to these changes.
VGM Scores
Currently, Ironwood has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. However, the stock has a score of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Ironwood 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
Ironwood is part of the Zacks Medical - Drugs industry. Over the past month, United Therapeutics (UTHR - Free Report) , a stock from the same industry, has gained 3.7%. The company reported its results for the quarter ended September 2025 more than a month ago.
United Therapeutics reported revenues of $799.5 million in the last reported quarter, representing a year-over-year change of +6.8%. EPS of $7.16 for the same period compares with $6.39 a year ago.
For the current quarter, United Therapeutics is expected to post earnings of $6.74 per share, indicating a change of +8.9% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.8% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for United Therapeutics. Also, the stock has a VGM Score of A.
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Why Is Ironwood (IRWD) Up 24.9% Since Last Earnings Report?
It has been about a month since the last earnings report for Ironwood Pharmaceuticals (IRWD - Free Report) . Shares have added about 24.9% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Ironwood due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for Ironwood Pharmaceuticals, Inc. before we dive into how investors and analysts have reacted as of late.
Ironwood Beats on Q3 Earnings & Revenues, Raises 2025 View
Ironwood reported adjusted earnings of 24 cents per share for the third quarter of 2025, which comprehensively beat the Zacks Consensus Estimate of 9 cents. The company had reported earnings of 2 cents per share in the year-ago quarter.
Total revenues in the third quarter were $122.1 million, which also beat the Zacks Consensus Estimate of $68 million. Revenues increased by around 33.3% year over year.
Quarter in Detail
As reported by its partner AbbVie, Ironwood’s marketed product, Linzess, generated net sales of $314.9 million in the United States, up 40% year over year, owing to improved net pricing and strong demand growth. Total prescription demand for Linzess increased 12% year over year.
Ironwood’s share of net profit from the sales of Linzess in the United States (included in collaborative revenues) totaled $119.6 million, reflecting an increase of 35% year over year.
Ironwood's royalties and other revenues were $2.5 million in the third quarter. In the year-ago quarter, the company recorded $2.7 million in royalties and other revenues.
Total cost and expenses (including research and development expenses, selling, general and administrative expenses and restructuring expenses) in the third quarter were $46.6 million, down 29.4% from the year-ago quarter.
Ironwood recorded adjusted EBITDA of $81.8 million in the third quarter, reflecting a significant increase year over year.
As of Sept. 30, 2025, Ironwood had cash and cash equivalents worth $140.4 million compared with $92.9 million as of June 30, 2025.
2025 Guidance
Owing to the strong performance of Linzess during the third quarter, Ironwood raised its full-year 2025 revenue guidance.
The company now expects total revenues in the range of $290-$310 million for 2025, compared with the previous guidance of $260-$290 million.
U.S. sales of Linzess (to be recorded by AbbVie) are now expected to be in the range of $860-$890 million compared with the earlier projection of $800-$850 million.
Ironwood now expects to deliver an adjusted EBITDA of more than $135 million (previously expected to be more than $105 million) in 2025.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -87.5% due to these changes.
VGM Scores
Currently, Ironwood has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. However, the stock has a score of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Ironwood 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
Ironwood is part of the Zacks Medical - Drugs industry. Over the past month, United Therapeutics (UTHR - Free Report) , a stock from the same industry, has gained 3.7%. The company reported its results for the quarter ended September 2025 more than a month ago.
United Therapeutics reported revenues of $799.5 million in the last reported quarter, representing a year-over-year change of +6.8%. EPS of $7.16 for the same period compares with $6.39 a year ago.
For the current quarter, United Therapeutics is expected to post earnings of $6.74 per share, indicating a change of +8.9% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.8% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for United Therapeutics. Also, the stock has a VGM Score of A.