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Vivus (VVUS) Down 17% Since Last Earnings Report: Can It Rebound?

Eastman Chemical (EMN) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

A month has gone by since the last earnings report for Vivus (VVUS). Shares have lost about 17% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Vivus due for a breakout? 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 drivers.

VIVUS Q3 Loss Narrower Than Expected, Revenues Up Y/Y

VIVUS reported a loss of 87 cents per share for the third quarter of 2018, wider than a loss of 57 cents in the year-ago period but narrower than the Zacks Consensus Estimate of $1.10.

Quarterly revenues increased 19.1% from the year-ago period to $18.1 million mainly due to contribution of sales from recently acquired drug, Pancreaze.

Quarter in Detail

Product revenues during the quarter rose 66.3% to $16.5 million.

Qsymia generated net product sales of $9.7 million, down 1.8% from the year-ago period due to decrease in shipments of the drug. Pancreaze brought in sales of $6.7 million in its first full quarter of sales.

Supply revenues from Stendra/Spedra were significantly down to $0.47 million in the third quarter compared with $2.1 million in the year-ago period. Royalty revenues from sales of Pancreaze in Canada and Spedra in Europe were $1.1 million, up 73.5%.

Selling, general and administrative (SG&A) expense was $8.5 million, a 0.8% increase year over year. The increase was due to higher marketing and promotional activities for Qsymia, which were mostly offset by cost control initiatives.

Research and development expense increased 133% to $2.1 million in the reported quarter due to increased development efforts for VI-0106 for the treatment of pulmonary arterial hypertension.

How Have Estimates Been Moving Since Then?

Fresh estimates followed an upward path over the past two months. The consensus estimate has shifted 51.82% due to these changes.

VGM Scores

Currently, Vivus has a poor Growth Score of F, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Vivus has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.



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