Amphastar (AMPH) to Report Q4 Earnings: What's in the Cards?
Amphastar Pharmaceuticals AMPH is slated to report its fourth-quarter and full-year 2023 results on Feb 28, after market close.
Amphastar’s pharmaceutical products, such as Glucagon, Primatene Mist, Epinephrine and Lidocaine, are the major contributors to its top line, which accounted for about 50% of the company’s total net revenues in the third quarter of 2023.
Let us see how things have shaped up for the quarter to be reported.
Factors to Consider
Amphastar reports its revenues under two segments — Product revenues and Other revenues.
The company’s Product revenues segment comprises sales of its Finished Pharmaceutical Products and Active Pharmaceutical Ingredients (API). Under the Other revenues segment, AMPH records net revenues from the sales of Baqsimi, which AMPH acquired from Eli Lilly in June 2023.
Baqsimi is a dry nasal spray to treat very low blood sugar in people with diabetes aged four years and above. The addition of this product to AMPH’s portfolio provides the company with a branded product with growing sales and a strong gross margin, thus strengthening its intranasal product portfolio. Baqsimi started contributing to Amphastar’s revenues in the third quarter of 2023.
The company’s fourth-quarter revenues are expected to have been driven by the sales of its high-margin pharmaceutical products.
Amphastar’s Finished Pharmaceutical Products portfolio comprises seven branded products, such as Glucagon, Primatene Mist, Epinephrine, Lidocaine, Enoxaparin, Phytonadione and Naloxone, along with other finished pharmaceutical products. The company’s fourth-quarter revenues from this segment are expected to have been driven by higher sales volume of its products. Sales from ganirelix and vasopressin, launched in 2022, and regadenoson, introduced in April 2023, might have also contributed to the revenues generated in the fourth quarter.
The Zacks Consensus Estimate for Total Finished Pharmaceutical Products Net Revenues is pegged at $181 million for the fourth quarter. The increasing trend of Glucagon sales in the past few quarters is likely to have continued in the to-be-reported quarter. The Zacks Consensus Estimate for Glucagon sales during the same time frame is pegged at $30.42 million.
Sales in the API business in the fourth quarter of 2023 are likely to have benefited from the favorable timing of customer purchases. The Zacks Consensus Estimate for revenues generated from this segment is pegged at $2.93 million.
Under the Other revenues segment, Amphastar records revenues from Baqsimi sales. This is expected to have generated incremental revenues for the company in the to-be-reported quarter.
Earnings Surprise History
Amphastar’s earnings surpassed expectations in each of the trailing four quarters, delivering an average earnings surprise of 52.06%. In the last reported quarter, the company reported a positive earnings surprise of 64.29%.
In the past year, shares of AMPH have shot up 63.6% compared with the industry’s 40.5% growth.
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Earnings Whisper
Our proven model does not conclusively predict an earnings beat for Amphastar this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. Unfortunately, that is not the case here, as you will see below. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Earnings ESP: Amphastar has an Earnings ESP of 0.00% as the Zacks Consensus Estimate and the Most Accurate Estimate are both pegged at 87 cents.
Zacks Rank: AMPH currently carries a Zacks Rank #3.
Amphastar Pharmaceuticals, Inc. Price, Consensus and EPS Surprise
Amphastar Pharmaceuticals, Inc. price-consensus-eps-surprise-chart | Amphastar Pharmaceuticals, Inc. Quote
Stocks to Consider
Here are some stocks in the overall medical sector that have the right combination of elements to beat on earnings this time around.
Sarepta Therapeutics SRPT has an Earnings ESP of +877.29% and sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Sarepta’s stock has gained 7.6% in the past year. Sarepta beat earnings estimates in each of the last four quarters. SRPT has an earnings surprise of 48.67%, on average.
CRISPR Therapeutics CRSP has an Earnings ESP of +100.00% and a Zacks Rank #3 at present.
CRISPR’s stock has shot up 56.3% in the past year. It beat earnings estimates in each of the last four quarters. CRSP has an earnings surprise of 45.74%, on average.
Moderna MRNA has an Earnings ESP of +37.55% and a Zacks Rank #3 at present.
Moderna’s stock has plunged 45% in the past year. It beat earnings estimates in three of the last four quarters, while missing the mark on one occasion. MRNA has an earnings surprise of 31.20%, on average.
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Amphastar Pharmaceuticals, Inc. (AMPH) : Free Stock Analysis Report
Moderna, Inc. (MRNA) : Free Stock Analysis Report
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CRISPR Therapeutics AG (CRSP) : Free Stock Analysis Report
