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Why Is Vivus (VVUS) Down 6.4% Since Last Earnings Report?

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A month has gone by since the last earnings report for Vivus (VVUS - Free Report) . Shares have lost about 6.4% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Vivus 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 catalysts.

VIVUS Q2 Loss Narrows Y/Y, Revenues Up

VIVUS reported a loss of 12 cents per share for the second quarter of 2018, narrower than a loss of 13 cents in the year-ago period but wider than the Zacks Consensus Estimate of 11 cents.

Quarterly revenues increased 33.3% from the year-ago period to $14.7 million mainly due to higher Qsymia sales and additional sales of recently acquired drug, Pancreaze.

Quarter in Detail

Qsymia generated net product sales of $11.1 million, up 30.7% from the year-ago period due to increase in shipments of the drug.

Supply and royalty revenues from Stendra/Spedra were $1.7 million in this quarter, down 36.9%.

Pancreaze brought in sales of $2.1 million during the quarter. The exocrine pancreatic insufficiency drug was acquired on Jun 8 from Janssen,

Selling, general and administrative (SG&A) expense was $11.7 million, almost flat year over year. The increase in expense related to acquisition of Pancreaze, debt restructuring and addition of new members to senior leadership team were almost offset by cost control initiatives for Qsymia.

Research and development expense more than doubled to $2 million in the reported quarter on continued development cost for tacrolimus.

 

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.

VGM Scores

At this time, Vivus has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, 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.

Outlook

Vivus has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.




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