A month has gone by since the last earnings report for Acorda Therapeutics (
ACOR Quick Quote ACOR - Free Report) . Shares have lost about 11.8% 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 Q1 Earnings Lag Estimates, Revenues Fall Y/Y
Acorda reported first-quarter 2020 loss per share of 51 cents, wider than the Zacks Consensus Estimate of a loss of 35 cents but narrower than the year-ago loss of 56 cents.
The company generated total revenues of $28.1 million in the first quarter, missing the Zacks Consensus Estimate of $39 million. Moreover, sales plunged 36.3% year over year due to lower sales of Ampyra.
Quarter in Detail
Inbrija, registered sales of $4.4 million in the reported quarter, reflecting a significant year-over-year increase. However, Inbrija sales dropped 27.8% sequentially owing a decline in new prescription starts due to the COVID-19 pandemic. Notably, the majority of Acorda’s net product revenues comes from Ampyra, which generated sales worth $20.1 million in the first quarter, reflecting a 49.8% slump year over year due to generic launches.
Royalty revenues were $3.4 million in the quarter, up 21.4% from the year-ago reported figure.
Research and development (R&D) expenses (excluding share-based compensation expenses) were $7.3 million, down 52.2% year over year.
Selling, general and administrative (SG&A) expenses (excluding share-based compensation expenses) were $39.6 million, down 20.6% year over year.
Acorda reiterated its financial outlook for 2020.
For 2020, the company envisions Ampyra net revenues within $85-$110 million. Operating expenses for the period are forecast within $170-$180 million.
However, Acorda believes that COVID-19 pandemic related stay-at-home orders and widespread decrease in physician office visits, may impact new prescription starts for Inbrija. Therefore, Acorda withdrew its 2020 guidance for the medicine. This also necessitated the withdrawal of total net product revenue outlook for 2020.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month. The consensus estimate has shifted -9.85% due to these changes.
At this time, Acorda has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, 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 D. 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 these revisions indicates a downward shift. Notably, Acorda has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.