Why Is Amicus Therapeutics (FOLD) Down 6.8% Since Last Earnings Report?
A month has gone by since the last earnings report for Amicus Therapeutics (FOLD). Shares have lost about 6.8% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Amicus Therapeutics 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.
Amicus Q2 Earnings Miss, Galafold Sales Grow
Amicus reported a second-quarter 2023 loss of 15 cents per share, wider than the Zacks Consensus Estimate of a loss of 12 cents. The company reported a loss of 21 cents per share in the year-ago quarter. The year-over-year improvement can be attributed to revenue growth in Galafold and careful expense management by the company.
Revenues in the quarter totaled $94.5 million, up 17% year over year. The figure beat the Zacks Consensus Estimate of $90 million. The top line comprised of sales of Galafold. On a constant-currency (cc) basis, total year-over-year revenue growth was also 17%.
Quarter in Details
Galafold revenues beat our model estimate of $89.6 million.
Adjusted research and development expenses decreased 58% year over year to $31 million.
Adjusted selling, general and administrative expenses totaled almost $53 million, up 17% from the year-ago quarter’s level.
Updates 2023 Guidance
The company updated its previously issued guidance for 2023, reflecting strong performance of Galafold.
Amicus now expects total Galafold revenue growth of 14-18% at cc, up from the previous projection of 12-17%. This was driven by continued underlying demand from both switch and treatment-naïve patients, geographic expansion, label extensions, continued diagnosis of new Fabry patients, and commercial execution across all major markets, including EU, Japan, the U.K. and the United States.
Adjusted operating expenses are estimated in the band of $330-$350 million, down from the previously estimated range of $340-$360 million.
The company plans on achieving profitability on a non-GAAP basis in the second half of 2023.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
The consensus estimate has shifted 36.3% due to these changes.
VGM Scores
Currently, Amicus Therapeutics has a strong Growth Score of A, a grade with the same score on the momentum front. 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 B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Amicus Therapeutics has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Amicus Therapeutics belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Myriad Genetics (MYGN), has gained 1.3% over the past month. More than a month has passed since the company reported results for the quarter ended June 2023.
Myriad reported revenues of $183.5 million in the last reported quarter, representing a year-over-year change of +2.3%. EPS of -$0.08 for the same period compares with $0.04 a year ago.
For the current quarter, Myriad is expected to post a loss of $0.08 per share, indicating a change of +57.9% from the year-ago quarter. The Zacks Consensus Estimate has changed -11.7% over the last 30 days.
Myriad has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.
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