ANI Pharmaceuticals (ANIP) to Post Q2 Earnings: What's in Store?
ANI Pharmaceuticals ANIP is set to report second-quarter 2023 results on Aug 9 before market open, wherein investors are likely to focus on the sales performance of the company’s core business segments — rare disease and generic business.
Let's see how things might have shaped up in the soon-to-be-reported quarter.
Factors to Consider
ANIP gains revenues primarily from the sales of generic products, rare disease products and established brand pharmaceutical products, royalties, and other pharmaceutical services.
The company’s revenue growth in the second quarter is likely to have been driven by the rapid uptake of its rare disease business and generic business segments.
Higher revenues from the lead product in the rare disease business, Cortrophin Gel, are likely to have boosted the company’s top line in the second quarter. The drug displayed growth in the number of new unique prescribers and repeat prescribers in recent quarters. The positive trend is expected to have continued in the second quarter.
The company has increased its promotional endeavors to enhance awareness of Cortrophin Gel through peer-to-peer education initiatives, focusing on target indications, such as rheumatology, neurology and nephrology. Additionally, ANIP has successfully implemented its previously outlined strategy of a measured expansion of the sales force, which resulted in the full staffing and operational status of its pulmonology sales team.
The Zacks Consensus Estimate for ANI Pharmaceuticals’ revenues from rare disease business is pegged at $19.73 million.
In the generic and other segments, ANIP’s strong commitment to U.S.-based manufacturing and excellence in generic product selection led to almost 43% growth in sales in the first quarter. This momentum is likely to have continued in the to-be-reported quarter.
Newly approved generic products, Methsuximide capsules 300 mg and Alendronate sodium oral solution, are expected to give a boost to the generic segment in the second quarter.
The Zacks Consensus Estimate for revenues from generic business and established branded products is pegged at $56.76 million and $19.78 million, respectively.
Total costs and expenses increased year over year in the first quarter. This trend is expected to have continued in the second quarter owing to a rise in research and development expenses, and selling, general and administrative costs.
Investors can expect an update on ANIP's business development plans on mergers and acquisitions for future growth opportunities. The company plans to make some substantial investments and improvements in its rare disease platform this year.
Earnings Surprise History
The company’s earnings surprise history has been encouraging so far. Its bottom line surpassed estimates in all of the trailing four quarters, delivering an average surprise of 68.64%.
ANI Pharmaceuticals, Inc. Price and EPS Surprise
ANI Pharmaceuticals, Inc. price-eps-surprise | ANI Pharmaceuticals, Inc. Quote
Shares of the company have risen 30.1% in the year-to-date period against the industry's 11.2% decline.
Image Source: Zacks Investment Research
Earnings Whisper
Our proven model does not predict an earnings beat for ANIP 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.
Earnings ESP: ANIP has an Earnings ESP of -12.50% as the Most Accurate Estimate of 56 cents per share is lower than the Zacks Consensus Estimate of 64 cents. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Zacks Rank: ANIP currently carries a Zacks Rank #2.
Stocks to Consider
Here are a few stocks worth considering from the overall healthcare space as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
ACADIA Pharmaceuticals ACAD has an Earnings ESP of +38.26% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
ACAD’s shares have rallied 82.4% in the year-to-date period. Its earnings beat estimates in two of the trailing four quarters and missed the mark in the other two, delivering an average negative surprise of 2.75%. The company will report second-quarter earnings on Aug 2, after market close.
Axsome Therapeutics AXSM has an Earnings ESP of +1.49% and a Zacks Rank #2 at present.
AXSM’s shares have gained 2% in the year-to-date period. Its earnings beat estimates in three of the trailing four quarters and missed the mark in one, delivering an average surprise of 22.34%. The company will report second-quarter earnings on Aug 7, before market open.
Moderna MRNA has an Earnings ESP of +5.90% and a Zacks Rank #3 at present.
MRNA’s shares have lost 33.9% year to date. Its earnings beat estimates in two of the last four quarters and missed the mark in the other two, delivering an average surprise of 21.97%. The company is scheduled to release second-quarter results on Aug 3, before market open.
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Moderna, Inc. (MRNA) : Free Stock Analysis Report
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