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Why Is Intra-Cellular (ITCI) Up 1.2% Since Last Earnings Report?

Zacks Equity Research
·4-min read

It has been about a month since the last earnings report for Intra-Cellular Therapies (ITCI). Shares have added about 1.2% in that time frame, underperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Intra-Cellular due for a pullback? 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.

Intra-Cellular Q1 Loss Narrower Than Expected, Sales Beat

Intra-Cellularreported first-quarter 2024 loss of 16 cents per share, narrower than the Zacks Consensus Estimate of a loss of 31 cents, primarily due to higher product sales. The company had incurred a loss of 46 cents per share in the year-ago quarter.

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Total revenues, comprising product sales and grant revenues, came in at $144.9 million compared with $95.3 million reported in the year-ago period. The top line beat the Zacks Consensus Estimate of $141.9 million.

Quarter in Detail

Caplyta, the only approved drug in Intra-Cellular’s portfolio, was approved by the FDA in December 2019, for treating schizophrenia in adults. The drug also received the FDA’s approval for treating bipolar depression in December 2021. Post this approval, Caplyta sales have increased tremendously.

Net product revenues, comprising Caplyta sales, were up 53% year over year to $144.8 million on the back of strong prescription uptake.

Per Intra-Cellular, Caplyta prescriptions jumped 39% year over year, despite typical first-quarter seasonal dynamics as well as industry disruption.

Research and development (R&D) expenses climbed 13% to $42.8 million from the year-ago quarter’s figure. This uptick was due to higher lumateperone program costs.

Selling, general and administrative (SG&A) expenses increased 14% year over year to $113.1 million, driven by marketing and advertising costs.

As of Mar 31, 2024, ITCI had cash, cash equivalents, restricted cash and investment securities of $477.4 million compared with $499.7 million as of Dec 31, 2023.

2024 Financial Outlook Reaffirmed

Intra-Cellular reiterated its previously announced financial guidance for 2024. It expects Caplyta net product sales in the range of $645-$675 million.

R&D expenses are expected in the band of $215-$240 million.

SG&A expenses are anticipated between $450 million and $480 million.

How Have Estimates Been Moving Since Then?

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

The consensus estimate has shifted 12.04% due to these changes.

VGM Scores

Currently, Intra-Cellular has a subpar Growth Score of D, however its Momentum Score is doing a lot better with an A. 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 D. 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, Intra-Cellular 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

Intra-Cellular belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Amgen (AMGN), has gained 0% over the past month. More than a month has passed since the company reported results for the quarter ended March 2024.

Amgen reported revenues of $7.45 billion in the last reported quarter, representing a year-over-year change of +22%. EPS of $3.96 for the same period compares with $3.98 a year ago.

For the current quarter, Amgen is expected to post earnings of $4.86 per share, indicating a change of -2.8% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.1% over the last 30 days.

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

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