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PDL BioPharma (PDLI) Up 9.2% Since Last Earnings Report: Can It Continue?

Zacks Equity Research

A month has gone by since the last earnings report for PDL BioPharma (PDLI). Shares have added about 9.2% 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 Q4 Earnings Top, Revenues Rise Y/Y

PDL BioPharma delivered earnings of 10 cents per share in the fourth quarter of 2018, beating the Zacks Consensus Estimate of 8 cents. However, the bottom line was lower than 17 cents in the year-ago period.

The company’s total revenues grossed $45.1 million in fourth-quarter 2018, reflecting a 28.4% decrease year over year. This downside is mainly attributable to a decline in royalties as well as lower product sales.

Quarter in Detail

Mr. Dominique Monnet assumed the role of the new chief executive officer (CEO) and president following the retirement of PDL’s former CEO John P. McLaughlin’s at the end of 2018.

Product revenues for the quarter were $26 million, down 20.2% year over year. The same included $18.8 million from the sales of Noden products — Tekturna and Tekturna HCT — and $7.2 million from the sales of LENSAR laser system in the United States.

PDL recognized $19.1 million in revenues from royalty rights while royalties from PDL's licensees to the Queen et al. patents and interest revenues were both less than $0.1 million.

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

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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