雅虎香港財經 Why Is Pacira (PCRX) Up 1.7% Since Last Earnings Report?
It has been about a month since the last earnings report for Pacira (PCRX). Shares have added about 1.7% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Pacira 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.
Pacira Q1 Earnings Miss, Exparel Sales Drive Revenues
Pacira reported first-quarter 2024 adjusted earnings of 62 cents per share, which missed the Zacks Consensus Estimate of 64 cents. The company had reported adjusted earnings of 49 cents per share in the year-ago quarter.
Total revenues amounted to $167.1 million, which increased 4% year over year and surpassed the Zacks Consensus Estimate of $165 million.
Quarter in Detail
Pacira’s top line comprises product sales and royalty revenues. The company recognizes product revenues from the sales of its three marketed drugs — Exparel, Zilretta and iovera.
Exparel’s net product sales were $132.4 million, which rose 2% from the year-ago quarter and missed both the Zacks Consensus Estimate of $134.6 million and our estimate of $133.3 million. Revenues generated from Exparel sales were negatively impacted by contracted discounts and vial mix, which led to the low sales growth rate in the reported quarter.
Zilretta’s net product sales came in at $25.8 million, up 6% year over year. Pacira completed the acquisition of Flexion Therapeutics in November 2021, following which the former began recognizing Zilretta sales. The reported figure missed the Zacks Consensus Estimate of $26.7 million but beat our model estimate of $24.4 million.
Net product sales of iovera were $5 million, up 26% from the year-ago quarter. The figure marginally missed the Zacks Consensus Estimate of $5.2 million and matched our model estimate.
Revenues generated from the sales of bupivacaine liposome injectable suspension to third-party licenses were pegged at $2.5 million, up significantly from the year-ago quarter’s figure.
Royalty revenues amounted to $1.3 million in the reported quarter, up 42% year over year.
Research and development (R&D) expenses (excluding stock-based compensation) came in at $16.4 million, up 8% from the year-ago quarter. The uptick can be attributed to start-up activities for the planned phase III study of Zilretta in shoulder osteoarthritis.
Selling, general and administrative (SG&A) expenses (excluding stock-based compensation) of $63.8 million also increased 2% year over year, largely due to a rise in professional and legal fees.
As of Mar 31, 2024, Pacira had cash, cash equivalents and available-for-sale investments of $325.9 million compared with $281 million as of Dec 31, 2023.
2024 Guidance Reaffirmed
Pacira reiterated its previously announced financial guidance for 2024. It expects total revenues in the band of $680-$705 million for the full year.
The company anticipates adjusted R&D expenses between $70 million and $80 million, while adjusted SG&A expenses are expected in the range of $245-$265 million.
The adjusted gross margin of the company is projected between 74% and 76% in 2024.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
VGM Scores
At this time, Pacira has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top quintile 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 broadly trending downward for the stock, and the magnitude of these revisions 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.
Performance of an Industry Player
Pacira is part of the Zacks Medical - Drugs industry. Over the past month, Corcept Therapeutics (CORT), a stock from the same industry, has gained 35.6%. The company reported its results for the quarter ended March 2024 more than a month ago.
Corcept reported revenues of $146.81 million in the last reported quarter, representing a year-over-year change of +39%. EPS of $0.25 for the same period compares with $0.14 a year ago.
For the current quarter, Corcept is expected to post earnings of $0.23 per share, indicating a change of -8% from the year-ago quarter. The Zacks Consensus Estimate has changed +2.3% over the last 30 days.
Corcept has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.
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Pacira BioSciences, Inc. (PCRX) : Free Stock Analysis Report
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