A month has gone by since the last earnings report for Amicus Therapeutics (FOLD). Shares have added about 13.7% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Amicus 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.
Amicus Q3 Earnings Beat, Galafold Sales Miss Estimates
Amicus Therapeutics reported a loss of 12 cents per share in third-quarter 2022, narrower than the Zacks Consensus Estimate of a loss of 19 cents. The company reported an adjusted loss of 19 cents per share in the year-ago quarter.
Revenues increased 2.7% year over year to $81.7 million in the third quarter, missing the Zacks Consensus Estimate of $85 million. Revenues were generated0 from the sales of Galafold (migalastat), approved for Fabry disease. On a constant-currency (cc) basis, total revenue growth was 14% year over year.
Quarter in Detail
Revenues in the third quarter were driven by strong new patient accruals but were partially offset by order timing in certain ex-US markets and foreign currency impact.
Operating expenses (adjusted basis) were $85.5 million, down 8.7% year over year.
As of Sep 30, 2022, Amicus Therapeutics had cash, cash equivalents and marketable securities of $354.7 million compared with $368.8 million on Jun 30, 2022.
Maintains 2022 Guidance
For the full year, Amicus Therapeutics expects total Galafold revenue growth between 15% and 20% at CER driven by continued underlying demand from geographic expansion, continued diagnosis of new Fabry patients and commercial execution across all major markets, including the United States, European Union, United Kingdom and Japan.
Adjusted operating expenses for the year have been updated and are presently estimated between $430-$440 million, down from the previous estimate of $470-$485 million. The downside can be attributed to prudent expense management and offset by continued investments for the global Galafold launch, AT-GAA clinical studies and pre-launch activities.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates flatlined during the past month.
The consensus estimate has shifted 25.76% due to these changes.
VGM Scores
At this time, Amicus Therapeutics has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Charting a somewhat similar path, 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
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, Horizon Therapeutics (HZNP), has gained 25.7% over the past month. More than a month has passed since the company reported results for the quarter ended September 2022.
Horizon Therapeutics reported revenues of $925.36 million in the last reported quarter, representing a year-over-year change of -10.8%. EPS of $1.25 for the same period compares with $1.75 a year ago.
Horizon Therapeutics is expected to post earnings of $1.10 per share for the current quarter, representing a year-over-year change of -22%. Over the last 30 days, the Zacks Consensus Estimate has changed +1.9%.
Horizon Therapeutics has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.
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