A month has gone by since the last earnings report for Alkermes (ALKS). Shares have added about 2.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Alkermes 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 catalysts.
Alkermes’ Q4 Earnings and Revenues Beat Estimates
Alkermes reported fourth-quarter 2021 adjusted earnings of 23 cents per share, which beat the Zacks Consensus Estimate of 13 cents. The company reported adjusted earnings of 10 cents per share in the year-ago quarter.
The company’s revenues of $324.5 million increased 15.9% from the year-ago quarter. The top line, also surpassed the Zacks Consensus Estimate of $320 million.
Quarter in Detail
Total manufacturing and royalty revenues were up 9.5% year over year to $143.4 million, primarily driven by growth in Vumerity. Vumerity revenues increased around 73% to $26.9 million.
Sales of proprietary drug Vivitrol (for alcohol and opioid dependence) increased approximately 15% year over year to $92 million, while the same for Aristada (for schizophrenia) increased approximately 14.1% year over year to $78.7 million. These increases were driven by the underlying unit growth.
Research and development (R&D) expenses were $98.4 million, down 12.2% year over year.
Selling, general and administrative (SG&A) expenses were $160.4 million, up 10% year over year due to increased investment to support the launch of Lybalvi (olanzapine and samidorphan).
Newly approved medicine, Lybalvi, generated sales worth $8.2 million.
As of Dec 31, 2021, Alkermes had cash and cash equivalents worth $765.7 million compared with $748.2 million on Sep 30, 2021. Total outstanding debt was $295.8 million as of Dec 31, 2021.
2022 Guidance
Alkermesexpects total revenues in the range of $1.0 billion to $1.09 billion in 2022. The Zacks Consensus Estimate for revenues stands at $1.15 billion.
Vivitrol net sales are expected between $355–$385 million and Aristada net sales are expected between $290–$320 million. Lybalvi net sales are expected between $55–$75 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
The consensus estimate has shifted 32.12% due to these changes.
VGM Scores
Currently, Alkermes has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% 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, Alkermes has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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