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Why Is VIVUS (VVUS) Down 18% Since its Last Earnings Report?

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It has been about a month since the last earnings report for VIVUS, Inc. (VVUS - Free Report) . Shares have lost about 18% in that time frame.

Will the recent negative trend continue leading up to its next earnings release, or is VVUS due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

VIVUS Q4 Loss Narrows, Qsymia Falters

VIVUS reported a loss of 10 cents per share in the fourth quarter of 2017, which was narrower than the Zacks Consensus Estimate of 13 cents.  The company had reported earnings of 54 cents in the year-ago period.

Quarterly revenues were significantly down to $11.9 million from the year-ago period from $81.8 million mainly due to lower license and milestone revenues.

Quarter in Detail

Qsymia generated net product sales of $8.9 million, down 19.1% from the year-ago period due to reduction in Qsymia inventory by wholesalers and unfavorable impact of change in revenue recognition methodology.

Supply and royalty revenues from Stendra/Spedra were $3 million in this quarter, up 114.3% from the year-ago period.

Selling, general and administrative expense was $8.6 million, down 33.9% year over year, mainly attributable to cost control initiatives undertaken by the company. Research and development expense decreased 32% to $1.2 million in the reported quarter due to decreased efforts related to Qsymia regulatory requirements, partially offset by costs related to development of tacrolimus.

2017 Results

Revenues for the full year decreased year over year to $65.4 million. Loss per share for 2017 was 29 cents  against earnings of 22 cents in 2016.
 

How Have Estimates Been Moving Since Then?

Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.

VIVUS, Inc. Price and Consensus

VGM Scores

At this time, VVUS has an average Growth Score of C, however its Momentum is doing a bit better with a B. Charting a somewhat similar path, the stock was allocated a grade 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 B. If you aren't focused on one strategy, this score is the one you should be interested in.

Based on our scores, the stock is primarily suitable for value investors while also being suitable for those looking for momentum and to a lesser degree growth.

Outlook

VVUS has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.




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