Apellis Pharmaceuticals, Inc. (APLS) Up 67.8% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Apellis Pharmaceuticals, Inc. (APLS). Shares have added about 67.8% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Apellis Pharmaceuticals, Inc. due for a pullback? 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.
Q2 Earnings Top, Syfovre Sales Boost Revenues
Apellis reported second-quarter loss of $1.02 per share, which was narrower than the Zacks Consensus Estimate of a loss of $1.35. The company reported a loss of $1.46 per share in the year-ago quarter.
Total revenues amounted to $95 million, which surpassed the Zacks Consensus Estimate of $72 million. In the year-ago quarter, the company reported revenues of $16 million. The significant year-over-year jump of 494% was fueled by increasing sales of Syfovre (pegcetacoplan injection) in the reported quarter.
Quarter in Detail
Revenues in the reported quarter included product sales of the marketed drugs — Empaveli and Syfovre — and licensing and other revenues, under the collaboration agreement with Sobi.
Empaveli recorded sales of $22.3 million, up 42% from the year-ago quarter’s figure. Syfovre recorded its first full-quarter sales of $67.3 million.
Licensing and other revenues amounted to 5.3 million, up 657% from the year-ago quarter’s level.
Research and development expenses decreased 6% to $95.7 million from the prior-year quarter’s level. This was due to a decline in contract manufacturing expenses, along with a decline in clinical and preclinical study expenses, partially offset by an increase in personnel and developmental costs.
General and administrative expenses totaled $111.4 million, up 76% from the year-ago quarter’s figure. This was driven by higher employee-related costs and an increase in professional and consulting fees.
As of Jun 30, 2023, Apellis had cash, cash equivalents and marketable securities worth $616.3 million compared with $765 million as of Mar 31, 2023. Apellis expects its cash balance, combined with cash anticipated to be generated from sales of marketed products as well as Sobi reimbursements, to fund its operations into the first quarter of 2025.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review.
VGM Scores
Currently, Apellis Pharmaceuticals, Inc. has a subpar Growth Score of D, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of F on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Apellis Pharmaceuticals, Inc. 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
Apellis Pharmaceuticals, Inc. is part of the Zacks Medical - Biomedical and Genetics industry. Over the past month, Bristol Myers Squibb (BMY), a stock from the same industry, has gained 2.2%. The company reported its results for the quarter ended June 2023 more than a month ago.
Bristol Myers reported revenues of $11.23 billion in the last reported quarter, representing a year-over-year change of -5.6%. EPS of $1.75 for the same period compares with $1.93 a year ago.
For the current quarter, Bristol Myers is expected to post earnings of $1.83 per share, indicating a change of -8% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.8% over the last 30 days.
Bristol Myers has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.
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