Back to top

Image: Bigstock

Why Is Puma Biotech (PBYI) Down 1% Since Last Earnings Report?

Read MoreHide Full Article

A month has gone by since the last earnings report for Puma Biotech (PBYI - Free Report) . Shares have lost about 1% in that time frame, underperforming the S&P 500.

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

Puma Biotech Q3 Earnings Beat, Nerlynx Sales Weak

Puma Biotech incurred a loss of 44 cents per share in the third quarter of 2019, which was narrower than the Zacks Consensus Estimate of a loss of 76 cents.

The loss per share includes an impact of stock-based compensation expense. Excluding such impact, adjusted net loss per share was 12 cents per share versus earnings of 16 cents in the year-ago quarter.

Total revenues consisted of net product revenues from the sales of Nerlynx, and license and royalty revenues. In the third quarter of 2019, total revenues were $56.4 million, comprising $53.5 million of product revenues from Nerlynx, $0.1 million of royalty revenues from licensing partners and license revenues of $2.8 million. However, sales missed the Zacks Consensus Estimate of $61.0 million and were also lower than the year-ago figure of $62.6 million.

Quarter in Detail

Sales of Nerlynx rose a mere 1.7% year over year and declined 0.6% on a sequential basis. A higher number of patients discontinuing treatment with Nerlynx resulted in a sequential decline in Nerlynx’s sales in the third quarter. Nerlynx’s bottle volumes declined 2% sequentially in the quarter. However, new prescriptions grew 4% sequentially in the quarter.

Total operating costs in the quarter were $70.8 million, down 4.2% year over year.

Research and development (R&D) expenses (including for stock-based compensation expense) were $30.0 million in the quarter, down 17.6% from the year-ago period.

Selling, general and administrative expenses (including for stock-based compensation expense) rose 10.2% year over year to $31.4 million.

As of Sep 30, 2019, Puma Biotech had cash and cash equivalents of $110.4 million compared with $165.4 million as of Dec 31, 2018.

How Have Estimates Been Moving Since Then?

It turns out, estimates review have trended upward during the past month. The consensus estimate has shifted 25.36% due to these changes.

VGM Scores

At this time, Puma Biotech 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.

Outlook

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


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Puma Biotechnology, Inc. (PBYI) - free report >>

Published in