Arena Pharmaceuticals (ARNA) Down 1.5% Since Earnings Report: Can It Rebound?

It has been about a month since the last earnings report for Arena Pharmaceuticals, Inc. ARNA. Shares lost about 1.5% in that time frame.

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 its most recent earnings report in order to get a better handle on the important catalysts.

Arena Pharmaceuticals Q2 Loss Wider than Expected

Arena Pharmaceuticals reported a loss of $0.77 per share in the second quarter of 2017, narrower than the year-ago loss of $1.12 per share. However, the loss was wider than the Zacks Consensus Estimate of a loss of $0.68.

Total revenue in the quarter was $6.5 million, down 31.7% from the year-ago quarter. However, revenues beat the Zacks Consensus Estimate of $5.62 million. Revenues included $2.06 million in net product sales of Belviq, $1.8 million in manufacturing support payments from Japanese pharma company Eisai and $1.9 million in the form of upfront payments from collaborations with Boehringer Ingelheim and Axovant Sciences Ltd.

Quarter in Detail

During the second quarter of 2017, Belviq sales slumped to $2.06 million from $4.3 million a year ago.

Research & development (R&D) expenses declined 3.4% year over year to $17.9 million. General & administrative (G&A) expenses were $7.2 million, down 14.5% year over year.

Subsequent to quarter-end in July, the company received net proceeds of $162 million from the sale of common stock under equity financing during the quarter.

How Have Estimates Been Moving Since Then?

Following the release, investors have witnessed a flat trend for fresh estimates. There has been one revision higher for the current quarter compared to one lower.

Arena Pharmaceuticals, Inc. Price and Consensus

 

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

VGM Scores

At this time, the stock has an average Growth Score of C, though it is lagging a bit on the momentum front with a D. Charting a somewhat similar path, 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.

The company's stock is suitable solely for growth based on our styles scores.

Outlook

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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