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Why Is United Therapeutics (UTHR) Up 3.8% Since Last Earnings Report?

A month has gone by since the last earnings report for United Therapeutics (UTHR). Shares have added about 3.8% in that time frame, underperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is United 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 its most recent earnings report in order to get a better handle on the important drivers.

United Therapeutics Q3 Earnings & Sales Beat Estimates

United Therapeutics reported third-quarter 2022 adjusted earnings of $4.91 per share, which beat the Zacks Consensus Estimate of $3.57 per share. Earnings rose 44% year over year.

Revenues for the reported quarter were $516.0 million, which beat the Zacks Consensus Estimate of $492.9 million. Revenues rose 16% year over year, driven by Tyvaso.

Quarter in Detail

United Therapeutics has increased its patient (being treated with one of its treprostinil therapies) additions per quarter by about 66%, from around 300 per quarter in 2021 to around 500 per quarter in 2022. It expects to have 25,000 patients on its medicines by 2025 compared with 12,000 at present.

Tyvaso sales totaled $257.7 million, up 57% year over year, gaining from higher volumes due to patient growth, following the label expansion approval for PH-ILD indication in 2021 as well as the launch of Tyvaso DPI formulation in June 2022.

In 2021, the company set a goal to double the number of Tyvaso patients from 3,000 to around 6,000 by the end of 2022. As of the end of October, it had around 5,600 patients on Tyvaso.

Orenitram sales amounted to $87.5 million in the reported quarter, up 3% year over year.

Remodulin (including Remunity Pump) sales were $114.0 million, down 9% year over year, due to reduced sales in the United States as well as international markets.

Unituxin sales reached $46.1 million, down 17% year over year.

Adcirca sales were $10.7 million, down 27% year over year.

Research and development expenses were $66.1 million in the quarter, down 17% year over year. Selling, general and administrative expenses declined 10% to $98.4 million in the quarter.

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 15.21% due to these changes.

VGM Scores

Currently, United Therapeutics has a nice Growth Score of B, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.

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

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise United Therapeutics has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry Player

United Therapeutics belongs to the Zacks Medical - Drugs industry. Another stock from the same industry, Catalent (CTLT), has gained 23.6% over the past month. More than a month has passed since the company reported results for the quarter ended September 2022.

Catalent reported revenues of $1.02 billion in the last reported quarter, representing a year-over-year change of -0.3%. EPS of $0.34 for the same period compares with $0.71 a year ago.

For the current quarter, Catalent is expected to post earnings of $0.70 per share, indicating a change of -22.2% from the year-ago quarter. The Zacks Consensus Estimate has changed -11.1% over the last 30 days.

Catalent has a Zacks Rank #4 (Sell) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.

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