Why Is Esperion Therapeutics (ESPR) Up 29.1% Since Last Earnings Report?
A month has gone by since the last earnings report for Esperion Therapeutics (ESPR). Shares have added about 29.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Esperion Therapeutics due for a pullback? 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 catalysts.
Esperion Q4 Earnings & Revenues Top Estimates
Esperion incurred a loss per share of $1.77 per share for the fourth quarter of 2021, significantly narrower than the Zacks Consensus Estimate of a loss of $2.32 per share. The company had recorded a loss of $3.89 per share in the year-ago period.
The company generated revenues of $15.4 million, up almost 60% year over year. Revenues also beat the Zacks Consensus Estimate of $14.5 million.
Quarter in Details
Product revenues, solely from the United States, were $12.2 million in the fourth quarter, up 49.3% year over year. Product revenues were up 11.9% sequentially. The company stated that prescriptions for its drugs were up 9% year over year.
The company recorded royalty revenues of $0.8 million during the reported quarter, compared with $1.2 million in the previous quarter. The item was included in Collaboration revenues, which were $3.2 million during the fourth quarter, compared with $1.5 million in the year-ago quarter.
Research and development (R&D) expense decreased 34.2% from the year-ago period to $27.6 million due to a decline in contract research organization and compensation expense.
Selling, general and administrative expenses (SG&A) were down 37.7% year over year to $38.3 million due to lower promotional and commercial compensation expenses.
As of Dec 31, 2021, Esperion had cash, cash equivalents, restricted cash and investment securities of $309.3 million compared with cash, cash equivalents and short-term investments $323 million as of Sep 30, 2021.
Full-Year Results
Esperion reported revenues of $78.4 million compared with $227.5 million in 2020. The company had recorded one-time collaboration revenues from its partnerships in 2020, which were absent in 2021 and led to a significant decline in revenues. However, product sales increased more than 200% year over year.
The company’s loss for 2021 was $9.31 per share, wider than the loss of $5.23 per share in the year-ago period.
2022 Guidance Maintained
Esperion maintained its guidance for R&D and SG&A costs in 2022 provided in January. The company expects R&D expense for 2022 to be in the range of $100-$110 million, while SG&A expense is expected to be between $120 million and $130 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
VGM Scores
Currently, Esperion Therapeutics has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. However, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. 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, Esperion Therapeutics has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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