It has been about a month since the last earnings report for Pacira Pharmaceuticals, Inc. (PCRX - Free Report) . Shares have added about 3.5% in that time frame.
Will the recent positive trend continue leading up to its next earnings release, or is PCRX due for a pullback? 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 catalysts.
Pacira Misses Earnings and Revenue Estimates in Q1
Pacira reported first-quarter 2018 earnings of 2 cents per share which missed the Zacks Consensus Estimate of 6 cents. The company recorded a loss of 19 cents in the year-ago quarter.
Revenues increased 9.1% year over year to $74.3 million. However, revenues missed the Zacks Consensus Estimate of $75 million. Exparel sales were $74 million in the quarter, up 9.4% year over year.
Quarter in Detail
Pacira’s top line comprises product revenues, collaborative licensing and milestone revenues, and royalty revenues. DepoCyt(e) and other product revenues came in at $0.3 million, down 65.1%.
Collaborative licensing and milestone revenues were nil in the quarter. Also, royalty revenues were $0.3 million, down 50.9%.
Pacira reiterated its guidance for 2018. It projects Exparel sales to be in the range of $300 million to $310 million in 2018. The company expects R&D expenses (excluding stock-based compensation) to be in the band of $50 million to $60 million. SG&A expenses (excluding stock-based compensation) are anticipated to be in the $150-$160 million range. Also, stock-based compensation is expected to be between $30 million and $35 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates. There have been three revisions higher for the current quarter compared to five lower. Last month, the consensus estimate has shifted downward by 16.7% due to these changes.
Pacira Pharmaceuticals, Inc. Price and Consensus
At this time, PCRX has a nice Growth Score of B, though it is lagging a lot on the momentum front with an F. The stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
The company's stock is suitable solely for growth based on our styles scores.
Estimates have been broadly trending downward for the stock and the magnitude of these revisions indicates a downward shift. Notably, PCRX has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.