A month has gone by since the last earnings report for Acorda Therapeutics (ACOR). Shares have lost about 6% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Acorda 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.
Acorda Q4 Earnings and Revenues Surpass Estimates
Acorda announced fourth-quarter 2018 earnings per share of 45 cents, significantly beating the Zacks Consensus Estimate of a loss of 60 cents. However, the figure declined from the year-ago earnings of 61 cents.
Acorda generated total revenues of $69.1 million in the fourth quarter, comprehensively outshining the Zacks Consensus Estimate of $41 million. However, sales tumbled a massive 63.3% year over year.
Quarter in Detail
Majority of Acorda’s net product revenues were drawn from the company’s key multiple sclerosis (MS) drug Ampyra, which raked in sales of $64.2 million in the reported quarter. Sales of Ampyra plunged 61.6% year over year and 53.4% sequentially due to generic launches including Mylan (NASDAQ:MYL)'s authorized generic version.
Also, on fourth-quarter conference call, the company stated that Ampyra sales will see a steady decline in the quarters ahead in 2019.
Notably, in the quarter under consideration, royalty revenues plummeted 82.6% to $2.8 million from the year-ago figure of $16.1 million.
Acorda’s research and development (R&D) expenses (excluding share-based compensation expenses) were $25.9 million, reflecting a decrease of 21.2% year over year.
Selling, general and administrative (SG&A) expenses (excluding share-based compensation expenses) were $33 million, representing a 3.2% year-over-year dip.
2019 Guidance
The company will no longer provide any outlook for Ampyra due to declining revenues, resulting from the entrance of generics.
The company expects full-year R&D and SG&A expenses (excluding share-based compensation) for 2019 in the band of $70-$80 million and $200-$210 million, respectively.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
Acorda Therapeutics, Inc. (ACOR): Free Stock Analysis Report
Original post