It has been about a month since the last earnings report for Acorda Therapeutics (ACOR - Free Report) . Shares have lost about 11.3% 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 the most recent earnings report in order to get a better handle on the important catalysts.
Acorda Earnings and Revenues Beat Estimates in Q1
Acorda reported first-quarter 2019 loss per share of 56 cents, narrower than the Zacks Consensus Estimate of a loss of 97 cents. However, the figure came in against the year-ago earnings of 14 cents.
Acorda generated total revenues of $44.1 million in the first quarter, comprehensively beating the Zacks Consensus Estimate of $36.6 million. However, sales tumbled a massive 58.4% year over year due to lower sales of Ampyra.
Quarter in Detail
Inbrija was launched in February this year and generated sales of $1.3 million in the first quarter of 2019. An approximately 2,000 prescription request forms for Inbrija were received through April 2019.
Notably, majority of Acorda’s net product revenues were drawn from Ampyra, which raked in sales of $40.1 million in the quarter. Sales of Ampyra tanked 61% year over year and 37.5% sequentially due to generic competition. Last September, Ampyra lost its exclusivity and generics entered the market including Mylan's authorized generic version.
Acorda believes that Ampyra sales will see a sharp decline in the quarters ahead in 2019.
Meanwhile, royalty revenues decreased 12.5% to $2.8 million in the quarter.
Acorda’s research and development (R&D) expenses (excluding share-based compensation expenses) were $15.3 million, reflecting a deterioration of 47.1% year over year.
Selling, general and administrative (SG&A) expenses (excluding share-based compensation expenses) were $49.9 million, representing a 15% year-over-year rise.
Acorda had $343.3 million cash, cash equivalents and investments as of March 31, 2019 compared with $445.6 as of Dec 31, 2018.
The company no longer provides any outlook for Ampyra due to its waning revenues, induced by the entry of generics.
The company expects full-year R&D and SG&A expenses (excluding share-based compensation) in the band of $70-$80 million and $200-$210 million, respectively.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
At this time, Acorda has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. However, the stock was allocated a grade of F on the value side, putting it in the bottom 20% 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, Acorda has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.