A month has gone by since the last earnings report for Pacira (PCRX - Free Report) . Shares have lost about 7.2% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Pacira 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 drivers.
Pacira Q1 Earnings Miss Estimates, Revenues In-Line
Pacira BioSciences delivered first-quarter 2019 earnings of 22 cents per share, missing the Zacks Consensus Estimate of 24 cents but surpassing the year-ago bottom line of 2 cents.
Revenues increased 22.4% year over year to $91.3 million, almost in line with the Zacks Consensus Estimate of $91 million. Moreover, the top-line came ahead of the year-earlier number of $74.6 million. Exparel sales came in at $90.6 million for the first quarter of 2019, rising 22.4% year over year. However, Exparel sales decreased 4% sequentially.
Quarter in Detail
Pacira’s top line comprises product revenues, other product sales plus royalty revenues. Royalty revenues came in at $0.40 million in the reported quarter, up 25% year over year.
Research and development (R&D) expenses (excluding stock-based compensation) decreased 3.6% to $13.2 million.
Selling, general and administrative (SG&A) expenses (excluding stock-based compensation) increased 11.9% to $42.2 million in the reported quarter.
Pacira provided its guidance for Exparel sales in 2019 and expects the same in the $400-$410 million range. This is unchanged from the last reported quarter’s projection levels.
The company’s R&D expenses (excluding stock-based compensation) might be within $60-$70 million while SG&A expenses (excluding stock-based compensation) are anticipated in the $165-$175 million range. Both are unchanged from the last reported quarter’s projection levels.
Pacira also expects iovera net product sales to be in the range of $8- $10 million.
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 17.19% due to these changes.
At this time, Pacira has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. However, 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 B. 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, Pacira has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.