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Esperion Therapeutics (ESPR) Up 29.3% Since Last Earnings Report: Can It Continue?

Zacks Equity Research
·4-min read

A month has gone by since the last earnings report for Esperion Therapeutics (ESPR). Shares have added about 29.3% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Esperion Therapeutics 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.

Esperion Q2 Earnings & Revenues MissEstimates

Esperion incurred a loss per share of $1.05 per share for the second quarter of 2022, wider than the Zacks Consensus Estimate of a loss of 95 cents per share. The company reported a loss of $1.67 per share in the year-ago period.

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Esperion generated revenues of $18.8 million, down 54% year over year. The year-ago quarter’s number also included a one-time milestone payment received by ESPR from its collaboration partner. Revenues also missed the Zacks Consensus Estimate of $19.4 million.

Quarter in Detail

Product revenues, solely from the United States, were $13.6 million in the second quarter, up approximately 28% year over year. Product revenues were up 1.7% sequentially.

Esperion recorded royalty revenues of $1.5 million during the reported quarter, compared with $1.0 million in the year-ago quarter. Royalty revenues were driven by the commercial launch of Nilemdo and Nustendi in international countries and growth in previously-launched territories. Overall, collaboration revenues during the quarter declined 82.5% to $5.3 million.

Research and development (R&D) expenses increased 29% from the year-ago period’s levels to $32.4 million due to an increase in costs for the ongoing CLEAR cardiovascular outcomes study (CVOT) being conducted by ESPR.

Selling, general and administrative expenses (SG&A) were down 36% year over year to $29.6 million, reflecting the positive impact of its cost-savings programs as part of its transformational plan announced in the fourth quarter of 2021.

As of Jun 30, 2022, Esperion had cash, cash equivalents, restricted cash and investment securities of $235.8 million compared with cash, cash equivalents and short-term investments of $268.5 million as of Mar 31, 2022.

2022 Guidance Maintained

Esperion maintained its guidance for R&D and SG&A costs in 2022 provided in January. The company expects R&D expense for 2022 to be in the range of $100-$110 million, while SG&A expense is expected to be between $120 million and $130 million.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision have trended upward during the past month.

VGM Scores

At this time, Esperion Therapeutics has a nice Growth Score of B, a grade with the same score on the momentum front. However, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for this investment strategy.

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

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Esperion Therapeutics 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

Esperion Therapeutics is part of the Zacks Medical - Drugs industry. Over the past month, ImmunoGen (IMGN), a stock from the same industry, has gained 18.1%. The company reported its results for the quarter ended June 2022 more than a month ago.

ImmunoGen reported revenues of $14.16 million in the last reported quarter, representing a year-over-year change of -16.5%. EPS of -$0.24 for the same period compares with -$0.15 a year ago.

ImmunoGen is expected to post a loss of $0.26 per share for the current quarter, representing a year-over-year change of -44.4%. Over the last 30 days, the Zacks Consensus Estimate has changed +1.4%.

ImmunoGen has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.


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