AMAG Pharma (AMAG) Down 10.6% Since Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for AMAG Pharmaceuticals, Inc. AMAG. Shares have lost about 10.6% in that time frame.
Will the recent negative trend continue leading up to its next earnings release, or is AMAG 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 drivers.
AMAG Pharma Beats on Q4 Earnings, Misses on Revenues
AMAG posted adjusted earnings of 10 cents per share in the fourth quarter of 2017 as against a loss of 31 cents in the year-ago quarter. The reported earnings compared favorably with the Zacks Consensus Estimate of a loss of 58 cents.
Adjusted earnings per share was $1.40 per share. The adjusted earnings exclude purchase accounting adjustments related to Cord Blood Registry deferred revenue, depreciation and intangible asset amortization, non-cash inventory step-up adjustments, stock-based compensation and adjustments to contingent consideration. Quarterly revenues came in at $158.3 million, up approximately 4.5% from $151.6 million in the year-ago quarter, driven by sales growth across the product portfolio. However, the top line marginally missed the Zacks Consensus Estimate of $159 million.
Quarter in Detail
Makena sales came in at $100.4 million, up 3.3% year over year.
Combined sales of Feraheme and MuGard amounted to $26.6 million, almost flat year over year. During the quarter, service revenues from Cord Blood Registry came in at $29.8 million, 7.5% higher than $27.7 million in the year-ago quarter.
Total adjusted costs and expenses decreased15.1% year over year.
Two New FDA Approvals in February
The FDA approved label expansion of Feraheme (ferumoxytol injection) beyond the current CKD indication. The new approval includes all eligible adult IDA patients who have intolerance to or have had unsatisfactory response to oral iron.
In February 2018, the FDA also approved a new administration option for Makena- subcutaneous auto-injector drug-device combination product to reduce the risk of preterm birth in certain at-risk women.
In early 2017, the company expanded its women's health product portfolio with the in-licensing of Intrarosa and bremelanotide. AMAG along with partner, Palatin, plans to file NDA for bremelanotide to treat HSDD in this quarter.
The company reduced debt by about 20% in 2017.
2017 Results
The company reported loss of $5.71 per share in 2017 compared with a loss of 7 cents in 2016. The loss was narrower than the Zacks Consensus Estimate of a loss of $6.43.
Revenues increased 12% to $609.9 million in 2017, compared with $532.1 million in 2016. Revenues missed the Zacks Consensus Estimate of $613.8 million.
2018 Outlook
AMAG expects revenues in the range of $500-$800 million for 2018. Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) is expected to be in the range of $100-$130 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates. There have been two revisions lower for the current quarter.
AMAG Pharmaceuticals, Inc. Price and Consensus
AMAG Pharmaceuticals, Inc. Price and Consensus | AMAG Pharmaceuticals, Inc. Quote
VGM Scores
At this time, AMAG has a great Growth Score of A, though it is lagging a lot on the momentum 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 B. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate that the stock is more suitable for growth investors than value investors.
Outlook
Estimates have been broadly trending downward for the stock and the magnitude of these revisions indicates a downward shift. Interestingly, AMAG has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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