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AMAG Pharma (AMAG) Beats on Q4 Earnings, Misses on Revenues

Zacks Equity Research
Updated

AMAG Pharmaceuticals, Inc. AMAG posted adjusted earnings of 10 cents per share in the fourth quarter of 2017 as against a loss of 31 cents in the year-ago quarter. The reported earnings compared favorably with the Zacks Consensus Estimate of a loss of 58 cents.

Adjusted earnings per share was $1.40 per share. The adjusted earnings exclude purchase accounting adjustments related to Cord Blood Registry deferred revenue, depreciation and intangible asset amortization, non-cash inventory step-up adjustments, stock-based compensation and adjustments to contingent consideration. Quarterly revenues came in at $158.3 million, up approximately 4.5% from $151.6 million in the year-ago quarter, driven by sales growth across the product portfolio. However, the top line marginally missed the Zacks Consensus Estimate of $159 million.

Shares of the company moved up by about 4.5% after the earnings release. Markedly, shares of AMAG have lost 7.6% over a year, compared with the industry’s decline of 3.9%.

 

Quarter in Detail

Makena sales came in at $100.4 million, up 3.3% year over year.

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Combined sales of Feraheme and MuGard amounted to $26.6 million, almost flat year over year. During the quarter, service revenues from Cord Blood Registry came in at $29.8 million, 7.5% higher than $27.7 million in the year-ago quarter.

Total adjusted costs and expenses decreased15.1% year over year.

Two New FDA Approvals in February

The FDA approved label expansion of Feraheme (ferumoxytol injection) beyond the current chronic kidney disease (“CKD”) indication. The new approval includes all eligible adult Iron Deficiency Anemia (“IDA”) patients who have intolerance to or have had unsatisfactory response to oral iron.

In February 2018, the FDA also approved a new administration option for Makena -  subcutaneous auto-injector drug-device combination product to reduce the risk of preterm birth in certain at-risk women.

In early 2017, the company expanded its women's health product portfolio with the in-licensing of Intrarosa and bremelanotide. AMAG along with partner, Palatin, plans to file new drug application (“NDA”) for bremelanotide to treat hypoactive sexual desire disorder (HSDD) in this quarter.

The company reduced debt by about 20% in 2017.

2017 Results

The company reported loss of $5.71 per share in 2017 compared with a loss of 7 cents in 2016. The loss was narrower than the Zacks Consensus Estimate of a loss of $6.43.

Revenues increased 12% to $609.9 million in 2017, compared with $532.1 million in 2016. Revenues missed the Zacks Consensus Estimate of $613.8 million.

2018 Outlook

AMAG expects revenues in the range of $500-$800 million for 2018. Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) is expected to be in the range of $100-$130 million.

 

AMAG Pharmaceuticals, Inc. Price, Consensus and EPS Surprise

 

AMAG Pharmaceuticals, Inc. Price, Consensus and EPS Surprise | AMAG Pharmaceuticals, Inc. Quote

 

Zacks Rank & Stock to Consider

AMAG carries a Zacks Rank #3 (Hold).

A few better-ranked stocks from the same space are Regeneron REGN, Ligand Pharmaceuticals Incorporated LGND and Enanta Pharmaceuticals, Inc. ENTA. WhileRegeneron sports a Zacks Rank #1 (Strong Buy), Ligandand Enanta Pharma carry a Zacks Rank #2 (Buy), each. You can see the complete list of today’s Zacks #1 Rank stocks here.

Regeneron’s earnings per share estimates have moved up from $17.13 to $18.65 and from $20.38 to $21.56 for 2018 and 2019 respectively in the last 30 days. The company pulled off a positive earnings surprise in three of the last four quarters, with an average beat of 9.15%.

Ligand’s earnings per share estimates have moved up from $3.54 to $3.78 for 2018 in the last 60 days. The company delivered a positive earnings surprise in three out of the trailing four quarters, with an average beat of 24.88%. Share price of the company moved up 44.7% over a year.

Enanta Pharma delivered a positive earnings surprise in three of the last four quarters, with an average beat of 373.1%. Share price of the company surged 170.1% over a year.

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