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PDL BioPharma (PDLI) Up 2.4% Since Last Earnings Report: Can It Continue?

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

A month has gone by since the last earnings report for PDL BioPharma (PDLI). Shares have added about 2.4% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is PDL BioPharma 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 catalysts.

PDL BioPharma Q3 Earnings Top, Revenues Rise Y/Y

PDL BioPharma reported earnings of 9 cents per share in the third quarter of 2018, lower than year-ago period’s figure of 14 cents.

The company’s total revenues grossed $67.9 million in the reported quarter, reflecting an 8.2% increase year over year. This upside is mainly attributable to a sharp rise in royalties and product revenues.

Quarter in Detail

Product revenues for the quarter under review were $24.4 million, up 21.5% year over year. The same included $17.8 million from the sales of Noden products — Tekturna and Tekturna HCT — and $6.6 million from the sales of LENSAR laser system in the United States.

PDL recognized $42.2 million in revenues from royalty rights, $0.5 million of royalties from PDL's licensees to the Queen et al. patents and $0.8 million of interest revenues.

Royalty revenues from the Queen et al. licenses were lower than the year-ago period, mainly due to weak product supplies of Tysabri.

Research and development (R&D) expenses for the third quarter summed $0.7 million, up 11.1% from the prior-year level. This uptick was owing to a contribution of additional cost of product revenues from Noden products and LENSAR laser system in ex-U.S. markets

General and administrative expenses escalated 10.9% to $13.9 million from the level registered in comparable quarter last year.

How Have Estimates Been Moving Since Then?

Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.

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