A month has gone by since the last earnings report for Arena Pharmaceuticals (ARNA - Free Report) . Shares have added about 7.4% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Arena Pharmaceuticals due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Arena Pharmaceuticals Q2 Loss Wider Than Expected, Revenues Beat
Arena Pharmaceuticals reported a loss of 65 cents per share for the second quarter of 2018, wider than the Zacks Consensus Estimate of a loss of 62 cents. The year-ago loss was 77 cents per share.
Total revenues in the quarter were $4 million, up 110.4% from the year-ago quarter. Sales also beat the Zacks Consensus Estimate of $1 million. Revenues include $3.1 million from collaboration revenues and $0.9 million in royalty revenues from Japanese pharma company, Eisai, based upon Eisai’s sales of Belviq to its distributors.
Research & development (R&D) expenses increased 51.2% from the year-ago level to $26.8 million.
General and administrative (SG&A) expenses were also up 45.5% to $10.4 million in the quarter.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates. The consensus estimate has shifted -6.37% due to these changes.
Currently, Arena Pharmaceuticals has a poor Growth Score of F, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Arena Pharmaceuticals has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.