Lantheus (LNTH) Q4 Earnings Surpass Estimates, Gross Margin Up
Lantheus Holdings, Inc. LNTH delivered adjusted earnings per share (EPS) of $1.75 in the fourth quarter of 2023, up 27.7% year over year. The figure topped the Zacks Consensus Estimate by 18.2%.
The adjustments include expenses related to amortization of acquired intangible assets, among others.
GAAP EPS for the quarter was $1.47, against the year-earlier loss of $1.74 per share.
Full-year adjusted EPS was $6.23, up 47.6% compared with that at the end of the comparable 2022 period. The figure beat the Zacks Consensus Estimate by 4.2%.
Revenues in Detail
Lantheus registered revenues of $353.9 million in the fourth quarter, up 34.5% year over year. The figure topped the Zacks Consensus Estimate by 1%.
Full-year revenues were $1.29 billion, reflecting a 38.6% improvement from the comparable 2022 period. The figure was in line with the Zacks Consensus Estimate.
Segment Details
Lantheus’ operations consist of three categories — Precision Diagnostics, Radiopharmaceutical Oncology, and Strategic Partnerships and Other Revenue.
For the quarter under review, Precision Diagnostics reported revenues of $100.6 million, up 6.6% from the year-ago quarter. This upside can be attributed to strength in DEFINITY products, which fetched revenues of $73.1 million (up 14.9% year over year).
Revenues in the Radiopharmaceutical Oncology segment totaled $230.6 million, up 42.8% year over year. The segment’s performance reflected solid PYLARIFY sales, which generated revenues of $229.9 million, up 43.1% year over year.
Strategic partnerships and other revenues were $22.8 million, up 214.9% from the year-ago quarter. This was driven by RELISTOR’s milestone contribution of $15 million and MK-6240's revenues of $6.4 million.
Lantheus Holdings, Inc. Price, Consensus and EPS Surprise
Lantheus Holdings, Inc. price-consensus-eps-surprise-chart | Lantheus Holdings, Inc. Quote
Margin Analysis
In the quarter under review, Lantheus’ gross profit increased 37.5% to $229.9 million. The gross margin expanded 141 basis points (bps) to 64.9%.
Sales and marketing expenses increased 30.7% to $35.3 million. Research and development expenses plunged 93.8% year over year to $16.8 million, while general and administrative expenses climbed 1.7% year over year to $40.3 million. Total operating expenses of $92.4 million decreased 72.7% year over year.
Total operating profit totaled $137.5 million, against the year-ago quarter’s operating loss of $171.7 million.
Financial Position
Lantheus exited 2023 with cash and cash equivalents of $713.7 million compared with $415.7 million at 2022-end. Total debt (including current debt obligations) at the end of 2023 was $562.5 million compared with $558.1 million at 2022-end.
Cumulative net cash provided by operating activities at the end of 2023 was $305.3 million compared with $281.8 million a year ago.
Guidance
Lantheus has provided its financial outlook for first-quarter 2024 and initiated the same for the full year.
The company projects its first-quarter revenues in the range of $347 million-$355 million. The Zacks Consensus Estimate is pegged at $334 million.
The first-quarter adjusted EPS is anticipated to be in the range of $1.50-$1.54. The Zacks Consensus Estimate is pegged at $1.52.
Lantheus expects its full-year revenues in the range of $1.41 billion-$1.445 billion. The Zacks Consensus Estimate is pegged at $1.38 billion.
For the full year, adjusted EPS is anticipated to be in the range of $6.50-$6.70. The Zacks Consensus Estimate is pegged at $6.27.
Our Take
Lantheus ended the fourth quarter of 2023 with better-than-expected results. Its robust top-line and bottom-line results and strong segmental performances were impressive. The continued strength in PYLARIFY and DEFINITY was also promising. The gross margin expansion bodes well.
On the earnings call, management confirmed that the company had made significant advancements across its radiopharmaceutical pipeline for both late and earlier-stage oncology therapeutics and oncologic and non-oncologic diagnostics. Management also confirmed its strategic partnership with Perspective Therapeutics, which provides Lantheus with options to add radioligand therapy assets to its pipeline and expand into alpha therapeutics. These raise our optimism.
Yet, a decline in TechneLite revenues was disappointing. Lantheus continued to navigate general inflationary pressures during the quarter, which also raises apprehension.
Zacks Rank and Other Key Picks
Lantheus currently sports a Zacks Rank #1 (Strong Buy).
A few other top-ranked stocks in the broader medical space that have announced quarterly results are Cencora, Inc. COR, Elevance Health, Inc. ELV and Cardinal Health, Inc. CAH.
Cencora, carrying a Zacks Rank of 2 (Buy), reported first-quarter fiscal 2024 adjusted EPS of $3.28, beating the Zacks Consensus Estimate by 14.7%. Revenues of $72.25 billion outpaced the consensus mark by 5%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cencora has a long-term estimated growth rate of 8.6%. COR’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 6.7%.
Elevance Health reported fourth-quarter 2023 adjusted EPS of $5.62, beating the Zacks Consensus Estimate by 1.3%. Revenues of $42.45 billion outpaced the consensus mark by 1.5%. It currently carries a Zacks Rank #2.
Elevance Health has a long-term estimated growth rate of 12%. ELV’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 3.1%.
Cardinal Health reported second-quarter fiscal 2024 adjusted EPS of $1.82, beating the Zacks Consensus Estimate by 16.7%. Revenues of $57.45 billion surpassed the Zacks Consensus Estimate by 1.1%. It currently flaunts a Zacks Rank #1.
Cardinal Health has a long-term estimated growth rate of 15.9%. CAH’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 15.6%.
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