Yahoo Finance Why Is Amicus Therapeutics (FOLD) Down 8.1% Since Last Earnings Report?
A month has gone by since the last earnings report for Amicus Therapeutics (FOLD). Shares have lost about 8.1% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Amicus Therapeutics 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 catalysts.
Amicus' Q4 Earnings Beat, Revenues Meet Estimates
Amicus reported fourth-quarter 2023 adjusted earnings of 1 cent per share against the Zacks Consensus Estimate of a loss of 6 cents. The company had reported a loss of 17 cents per share in the year-ago quarter.
The year-over-year improvement can be attributed to the higher revenues of Galafold and the successful ongoing commercial launch of Pombiliti + Opfolda.
Revenues in the fourth quarter totaled $115.1 million, up 31% year over year on a reported basis. The figure matched the Zacks Consensus Estimate. The top line comprised sales of Galafold and Pombiliti + Opfolda. On a constant-currency (cc) basis, total revenue growth was 27% year over year.
Quarter in Detail
Galafold net product sales were $106.6 million in the fourth quarter, reflecting an increase of 18% year over year at cc. The drug’s sales were almost in line with our model estimate of $106.5 million.
Net product sales of Pombiliti + Opfolda were $8.5 million in the fourth quarter. The figure matched our model estimate. The commercial launch of the drug is currently underway in various markets, including Europe and the U.K.
As of Dec 31, 2023, Amicus had cash, cash equivalents and marketable securities worth $286.2 million compared with $280.3 million as of Sep 30, 2023.
2024 Guidance
Amicus maintained the guidance it provided earlier in January 2024. The company continues to expect total Galafold revenues to grow in the range of 11-16% at cc.
This guidance reflects continued patient demand from both switch and treatment-naïve patients, expansion into other geographies, label extensions, continued diagnosis of new Fabry patients and commercial execution across all major markets, including the EU, Japan, the U.K. and United States.
Adjusted operating expenses are estimated in the band of $345-$365 million.
The company targets to achieve profitability on a non-GAAP basis for the full year of 2024. Also, Amicus is looking to generate more than $0.5 billion in total revenues in 2024.
The company expects a non-GAAP profit in the first quarter of 2024 and the same is expected to build sequentially quarter-over-quarter thereafter.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review.
The consensus estimate has shifted 16.05% due to these changes.
VGM Scores
Currently, Amicus Therapeutics has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% 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.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Amicus 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
Amicus Therapeutics is part of the Zacks Medical - Biomedical and Genetics industry. Over the past month, Fate Therapeutics (FATE), a stock from the same industry, has gained 3.5%. The company reported its results for the quarter ended December 2023 more than a month ago.
Fate Therapeutics reported revenues of $1.68 million in the last reported quarter, representing a year-over-year change of -96.2%. EPS of -$0.45 for the same period compares with -$0.58 a year ago.
Fate Therapeutics is expected to post a loss of $0.48 per share for the current quarter, representing a year-over-year change of -152.6%. Over the last 30 days, the Zacks Consensus Estimate has changed +3.6%.
Fate Therapeutics 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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