Yahoo Finance Aerie (AERI) Up 1.9% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Aerie Pharmaceuticals (AERI). Shares have added about 1.9% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Aerie 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 drivers.
Aerie Q1 Loss Wider Than Expected
Aerie reported a loss of 84 cents per share in first-quarter 2020, wider than the Zacks Consensus Estimate of a loss of 75 cents. The loss in the year-ago quarter was 78 cents per share.
Revenues came in at $20.3 million from $10.8 million in the year-ago quarter but missed the Zacks Consensus Estimate of $21 million.
Total revenues came from sales of both approved drugs – Rhopressa and Rocklatan/
The company’s first drug, Rhopressa (netarsudil ophthalmic solution), has been approved for the reduction of elevated intraocular pressure (IOP) in patients with open-angle glaucoma or ocular hypertension. Aerie’s second drug, Rocklatan, a once-daily, quadruple-action, fixed-dose combination of Rhopressa and Pfizer’s Xalatan, has been approved to reduce elevated IOP in patients with open-angle glaucoma or ocular hypertension.
Quarter in Detail
Wholesaler shipments totaled 232,000 bottles compared to 206,000 bottles shipped during the fourth quarter of 2019.
While sales volumes increased sequentially for both drugs, total prescription volumes, as seen within the entire pharmaceutical market according to IQVIA data, have declined as the COVID-19 impact increased from late March 2020. New prescription growth has slowed.
Total operating expenses (excluding stock-based compensation expenses) in the quarter were $48.1 million, up from the year-ago quarter’s $46 million.
2020 Guidance
The company withdrew its 2020 revenue guidance due to the COVID-19 outbreak.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
VGM Scores
At this time, Aerie has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Aerie has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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