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Acorda (ACOR) Down 0.3% Since Last Earnings Report: Can It Rebound?

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It has been about a month since the last earnings report for Acorda Therapeutics (ACOR - Free Report) . Shares have lost about 0.3% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Acorda due for a breakout? 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 catalysts.

Acorda Q3 Earnings Top Estimates, Ampyra Sales View Up

Acorda delivered announced third-quarter 2018 earnings per share of 17 cents, beating the Zacks Consensus Estimate of 15 cents. However, the figure declined from the year-ago bottom line of 43 cents.

Acorda generated total revenues of $142.8 million in the third quarter, comprehensively surpassing the Zacks Consensus Estimate of $85 million. Sales inched up 1.2% year over year.

Quarter in Detail

Majority of Acorda’s net product revenues were drawn from the company’s key drug Ampyra, which raked in sales of $137.8 million in the reported quarter. Sales of Ampyra rose 4% year over year but declined 8.3% sequentially due to competition from Mylan's authorized generic version. Mylan launched its generic product in September.

However, the company said that the additional six weeks of exclusivity (between the end of July when its last Ampyra patent expired and the appeals court ruling in mid-September) led to better-than-expected Ampyra sales in the third quarter and the increase in full year guidance.

On third-quarter conference call, the company stated that Ampyra sales will see a significant decline in the coming months.

Acorda filed an en banc petition requesting a review by the entire court regarding the unfavorable ruling for Ampyra. The idea of the application is to request for a session, which will be heard by all the judges of the court. Such reviews are often considered for extremely important cases.

Notably, in the quarter, royalty revenues plunged 36.1% to $2.8 million from the year-ago figure of $4.4 million.

Acorda’s research and development (R&D) expenses (excluding share-based compensation expenses) were $21.8 million, a decrease of 30.1% year over year.

Selling, general and administrative (SG&A) expenses (excluding share-based compensation expenses) were $39.6, reflecting a 10% year-over-year increase.

2018 Guidance

The company lifted its Ampyra net sales outlook for 2018 from the range of $330-$350 million to more than $400 million.

The company retained its R&D and SG&A expenses (excluding share-based compensation) for the current year in the band of $100-$110 million and $170-$180 million, respectively.

Acorda has upped its cash balance from $300 million to above $400 million by the end of 2018.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates flatlined during the past month. The consensus estimate has shifted 7.75% due to these changes.

VGM Scores

Currently, Acorda has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 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

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




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