It has been about a month since the last earnings report for United Therapeutics (UTHR). Shares have added about 2.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is United 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 the most recent earnings report in order to get a better handle on the important catalysts.
United Therapeutics Q1 Earnings Miss, Sales Beat
United Therapeutics reported earnings of $2.41 per share in second-quarter 2022, missing the Zacks Consensus Estimate of $4.10 per share. Earnings were $3.65 per share in the year-ago quarter.
Revenues for the reported quarter were $466.9 million, which beat the Zacks Consensus Estimate of $463 million. Revenues rose 4.6% year over year driven by revenue growth of Tyvaso and Orenitram.
Quarter in Detail
Tyvaso sales totaled $201.0 million, up 31% year over year, gaining from higher volumes due to patient growth, following the label expansion approval for the PH-ILD indication in 2021.
United Therapeutics ended the reported quarter with a record number of patients, adding approximately 500 Tyvaso patients to its portfolio. The company expects around 6,000 U.S. patients on Tyvaso therapy by the end of 2022. United Therapeutics is approximately halfway toward the goal, with about 4,900 active patients on Tyvaso therapy at the end of the second quarter.
Orenitram sales amounted to $79.0 million in the reported quarter, up 4% year over year owing to higher volumes (driven by the FREEDOM-EV label expansion) and price increases.
Remodulin sales were $132.0 million, down 6% year over year, due to reduced sales in the United States. The decline has been partially offset by lower gross-to-net deductions.
Unituxin sales reached $44.5 million, down 16.2% year over year. The decline can be attributed to lower volumes due to unfavorable timing of orders by the company’s distributors. The decline was partially offset by a price increase of Unituxin.
Adcirca sales were $10.4 million, down 56% year over year. The erosion in sales can be attributed to a higher gross-to-net deductions, and lower volumes due to generic competition for Adcirca.
Research and development (R&D) expenses were $93.9 million in the quarter, up 26 % year over year, due to higher expenditure on preclinical pipeline. Selling, general and administrative expenses increased 25.4% to $141.5 million in the quarter.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -10.39% due to these changes.
Currently, United Therapeutics has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% 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.
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, United 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
United Therapeutics belongs to the Zacks Medical - Drugs industry. Another stock from the same industry, Esperion Therapeutics (ESPR), has gained 29.9% over the past month. More than a month has passed since the company reported results for the quarter ended June 2022.
Esperion Therapeutics reported revenues of $18.84 million in the last reported quarter, representing a year-over-year change of -53.7%. EPS of -$1.05 for the same period compares with -$1.67 a year ago.
For the current quarter, Esperion Therapeutics is expected to post a loss of $0.92 per share, indicating a change of +64.9% from the year-ago quarter. The Zacks Consensus Estimate has changed -1.3% over the last 30 days.
Esperion 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 D.
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