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Puma Biotech (PBYI) Down 44% Since Last Earnings Report: Can It Rebound?

Zacks Equity Research

It has been about a month since the last earnings report for Puma Biotech (PBYI). Shares have lost about 44% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Puma Biotech 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 drivers.

Puma Biotech Q4 Earnings & Revenues Beat

Puma Biotech incurred a loss of 29 cents per share in the fourth quarter of 2019, narrower than the Zacks Consensus Estimate of a loss of 48 cents as well as the year-ago loss of 80 cents per share.

The loss per share includes an impact of stock-based compensation expense. Excluding such impact, adjusted earnings per share were 1 cent per share versus a loss of 32 cents in the year-ago quarter.

Total revenues consisted of net product revenues from the sales of Nerlynx, license and royalty revenues. In the fourth quarter of 2019, total revenues were $62.9 million, comprising $58.7 million of product revenues from Nerlynx, $0.2 million of royalty revenues from licensing partners and license revenues of $4.0 million. Sales beat the Zacks Consensus Estimate of $57.0 million but were lower than the year-ago figure of $71.1 million.

Quarter in Detail

Sales of Nerlynx declined 3.9% year over year but rose 9.7% on a sequential basis. Nerlynx’s bottle volumes rose 5% sequentially in the quarter. However, new prescriptions declined 16.5% sequentially while total prescription declined 3.3% in the quarter due to lower patient enrolments during the Christmas holiday season.

Total operating costs in the quarter were $71.6 million, down 20.2% year over year.

Research and development expenses (including for stock-based compensation expense) were $31.3 million in the quarter, down 23.7% from the year-ago period.

Selling, general and administrative expenses (including for stock-based compensation expense) declined 21.3% year over year to $30.2 million.

As of Dec 31, 2019, Puma Biotech had cash and cash equivalents of $111.6 million compared with $165.4 million as of Dec 31, 2018.

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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