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Pacira (PCRX) Up 4.1% Since Last Earnings Report: Can It Continue?

Zacks Equity Research

It has been about a month since the last earnings report for Pacira (PCRX). Shares have added about 4.1% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Pacira due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

Pacira's Q2 Earnings Miss Estimates, Revenues In Line

Pacira reported second-quarter 2020 earnings of 12 cents per share, missing the Zacks Consensus Estimate of 16 cents and also decreasing from the year-ago figure of 41 cents.

Total revenues also declined 26% from the year-earlier figure of $102.6 million to $75.5 million in the reported quarter. Meanwhile, revenues were in line with the Zacks Consensus Estimate.

Quarter in Detail

Pacira’s top line mainly comprises product revenues, other product sales and royalty revenues.

Exparel net product sales were $73 million, down 26% from $98.9 million in the year-ago quarter.

Exparel/bupivacaine liposome injectable suspension sales came in at $0.8 million compared with $0.9 million in the year-ago quarter.

Though the newly-added product iovera system generated sales worth $1.4 million in the second quarter of 2020, the figure reflects a sequential decline of 39.1%.

Meanwhile, royalty revenues came in at $0.3 million in the reported quarter, down 62.5% year over year.

Research and development (R&D) expenses (excluding stock-based compensation) fell 25.9% to $12.3 million.

Selling, general and administrative (SG&A) expenses (excluding stock-based compensation) decreased 16% year over year to $36.8 million in the reported quarter.

2020 Outlook

Due to the prevalent COVID-19 pandemic situation, the company does not have enough visibility to forecast its adverse impact. As a result, Pacira is currently not providing full-year financial guidance.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed an upward trend in estimates revision. The consensus estimate has shifted 8.14% due to these changes.

VGM Scores

At this time, Pacira has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. 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, Pacira has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.



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