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Ironwood (IRWD) Beats Earnings & Revenues Estimates in Q4

Zacks Equity Research
Ironwood (IRWD) Beats Earnings & Revenues Estimates in Q4

Cambridge, MA-based Ironwood Pharmaceuticals, Inc. IRWD is focused on the development and commercialization of treatments primarily addressing gastrointestinal (“GI”) diseases. The company’s sole marketed drug, Linzess, is approved for treating irritable bowel syndrome with constipation (IBS-C) and chronic idiopathic constipation (“CIC”). The drug has performed encouragingly on the back of strong demand and expansion in new patient population and geographic regions. Ironwood commercializes Linzess in partnership with Allergan in the United States and equally share Linzess’ brand collaboration profits or losses.

Ironwood’s earnings track record has been mixed so far. Over the four trailing quarters, the company posted an average positive earnings surprise of 135.01%, beating estimates in three quarters and missing the same once.

Currently, Ironwood has a Zacks Rank #3 (Hold) but that could definitely change following the company’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: Ironwood reported adjusted earnings of 30 cents comfortably beating the Zacks Consensus Estimate of earnings of 22 cents.

Revenues: Ironwood generated total revenues of $126.3 million during the fourth quarter beating the Zacks Consensus Estimate of $109.7 million.

Key Stats: Linzess generated net sales of $231.2 million in the United States during the fourth quarter, up 12.6% year over year. Ironwood's share of net profits from sales of Linzess in the United States (included in collaborative revenues) was $101.6 million in the fourth quarter, up approximately 24.5% year over year. Net commercial profit in the reported quarter was $170.1 million. Per data provided by IQVIA, volume of prescribed Linzess capsules in the fourth quarter increased about 13% year over year.

2019 Results: Ironwood posted full year revenues of $428.4 million, representing a year-over-year growth of 23.6%. Adjusted earnings per share were 55 cents compared to loss per share of 69 cents in the year ago period.

2020 Guidance: Ironwood expects full year revenues in 2020 to be in the range of $360-$380 million. The company expects net sales of Linzess to grow by mid-single digit in 2020.

Share Market Activity: The shares were inactive in pre-market trading.

Check back later for our full write up on this IRWD earnings report later!

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