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Why Is Arena Pharmaceuticals (ARNA) Up 8.1% Since Last Earnings Report?

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It has been about a month since the last earnings report for Arena Pharmaceuticals (ARNA - Free Report) . Shares have added about 8.1% 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 Beats on Q3 Earnings and Sales

Arena Pharmaceuticals incurred a loss of 70 cents per share for the third quarter of 2018, narrower than the Zacks Consensus Estimate of a loss of 72 cents but wider than the year-ago loss of 61 cents (excluding a litigation settlement expense).

Total revenues in the reported quarter were $3.6 million, up 48% from the year-earlier period. Sales beat the Zacks Consensus Estimate of $1 million. Revenues comprised $3.2 million as royalty revenues and $0.4 million as collaboration revenues.

Research & development (R&D) expenses soared 67.2% from the prior-year level to $28.8 million.

General and administrative expenses surged 45.1% from the year-ago level to $10.8 million.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed an upward trend in fresh estimates.

VGM Scores

Currently, Arena Pharmaceuticals has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. Charting a somewhat similar path, the stock was allocated a grade of F on the value side, putting it in the lowest 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.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Arena Pharmaceuticals has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.




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