A month has gone by since the last earnings report for Pacira (PCRX). Shares have lost about 15.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Pacira due for a breakout? 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 catalysts.
Pacira Q2 Earnings and Revenues Surpass Estimates
Pacira delivered second-quarter 2019 earnings of 41 cents per share, surpassing the Zacks Consensus Estimate of 34 cents and also the year-ago bottom line of 24 cents.
Moreover, total revenues increased 22% year over year to $102.6 million, beating the Zacks Consensus Estimate of $100 million as well as the year-earlier number of $84 million. Exparel sales came in at $99.8, rising 24% year over year while the same rose 10.2% sequentially.
Newly-added product iovera system generated sales of $2 million in the reported quarter.
Quarter in Detail
Pacira’s top line mainly comprises product revenues, other product sales and royalty revenues. Royalty revenues came in at $0.78 million in the reported quarter, up 100% year over year.
Research and development (R&D) expenses (excluding stock-based compensation) surged 46.9% to $16.6 million.
Selling, general and administrative (SG&A) expenses (excluding stock-based compensation) increased 11.7% to $43.8 million in the reported quarter.
Pacira expects Exparel sales to be in the band of $400-$410 million for the full year. This is unchanged from the last reported quarter’s projection levels.
Pacira also expects iovera net product sales to be in the $8- $10 million range.
How Have Estimates Been Moving Since Then?
Fresh estimates followed a downward path over the past two months. The consensus estimate has shifted -26.02% due to these changes.
At this time, Pacira has a great Growth Score of A, though it is lagging a lot on the Momentum Score front 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 B. If you aren't focused on one strategy, this score is the one you should be interested in.
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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