AMAG Pharmaceuticals (AMAG) Down 6.6% Since Earnings Report: Can It Rebound?

It has been about a month since the last earnings report for AMAG Pharmaceuticals, Inc. AMAG. Shares have lost about 6.6% in the past month, underperforming the market.

Will the recent negative trend continue leading up to the stock's next earnings release, or is it 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.

AMAG Pharma Incurs Narrower-than-Expected Loss in Q2

AMAG witnessed loss of 40 cents per share in the second quarter of 2017 compared with loss of 2 cents in the year-ago quarter. The reported figure is narrower than the Zacks Consensus Estimate of a loss of 58 cents.

The company’s quarterly revenues came in at $158.4 million, up approximately 24.3% from the year-ago quarter figure of $127.4 million. The upside was driven by impressive growth in net sales of Makena. In fact, the top line slightly beat the Zacks Consensus Estimate of $158 million.

Quarter in Detail

Makena sales came in at $102.7 million, up 31% year over year. Combined sales of Feraheme and MuGard amounted to $27.7 million, up 12.6%. During the quarter, service revenues from CBR came in at $28 million, 14.8% higher than $24.4 million in the year-ago quarter.

Total adjusted costs and expenses increased almost 61.8% to $109.7 million (excluding one-time and special items).

Key Developments

In the reported quarter, the company launched Intrarosa, the first and only FDA-approved local non-estrogen product, for the treatment of moderate-to-severe dyspareunia (pain during intercourse), which is a symptom of vulvar and vaginal atrophy (VVA) due to menopause.

The FDA also accepted the supplemental NDA (sNDA) of Makena subcutaneous auto-injector for review and set an action date of Feb 14, 2018.

Meanwhile, has completed the submission of a supplemental new drug application (sNDA) to the FDA for expanding Feraheme’s label, to include adult iron deficiency anemia (IDA)  patients who are intolerable to oral iron treatment.

2017 Outlook

AMAG reiterated its guidance for 2017. Total revenue is expected to be in the range of $625 million-$685 million.

The company still expects revenues to in the band of $410 million-$440 million for Makena, $100 million-$110 million for Feraheme and MuGard and $110 million-$120 million for the CBR Segment.

How Have Estimates Been Moving Since Then?

Following the release, investors have witnessed an upward trend in fresh estimates. There have been two revisions higher for the current quarter compared to one lower.

AMAG Pharmaceuticals, Inc. Price and Consensus

 

AMAG Pharmaceuticals, Inc. Price and Consensus | AMAG Pharmaceuticals, Inc. Quote

VGM Scores

At this time, AMAG Pharmaceuticals' stock has a nice Growth Score of B, however its Momentum is doing a bit better with an A. Following the exact same course, the stock was allocated also a grade of A on the value side, putting it in the top 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Based on our scores, the stock is more suitable for value and momentum investors than growth investors.

Outlook

Estimates have been trending upward for the stock. The magnitude of these revisions also looks promising. Notably, the stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.

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