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Why Is PDL BioPharma (PDLI) Down 20.1% Since Last Earnings Report?

Zacks Equity Research

It has been about a month since the last earnings report for PDL BioPharma (PDLI). Shares have lost about 20.1% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is PDL BioPharma 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 drivers.

PDL BioPharma Q2 Earnings Top Mark, Revenues Fall Y/Y

PDL BioPharma delivered earnings of 10 cents per share in the second quarter of 2019, beating the Zacks Consensus Estimate of 4 cents. Meanwhile, the bottom line was lower than the year-ago figure of 10 cents.

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The company reported total revenues of negative $22.5 million in the quarter against $46.6 million generated in the prior year. Negative revenues were a result of non-cash write-down of the AcelRx royalty asset fair value of approximately $60 million. Without this fair value adjustment, total revenues for the quarter would have been $37.4 million.

Quarter in Detail

Product revenues in the quarter were $17.8 million, down 44% year over year. The same included $10.4 million from the sales of Noden products — Tekturna and Tekturna HCT — and another $7.4 million from the sales of LENSAR laser system in the United States.

The decrease in product revenues was due to lower Noden product sales in the United States.

Royalty revenues from the Queen et al. licenses were significantly lower than the year-ago period, mainly due to weak product supplies of Biogen’s multiple sclerosis drug Tysabri.

How Have Estimates Been Moving Since Then?

Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.


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