AMAG Pharmaceuticals (AMAG) Down 0.4% Since Last Earnings Report: Can It Rebound?

It has been about a month since the last earnings report for AMAG Pharmaceuticals (AMAG). Shares have lost about 0.4% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is AMAG Pharmaceuticals due for a breakout? 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.

AMAG’s Q2 Loss Narrower Than Expected

AMAG incurred an adjusted (excluding one-time expenses) loss of 25 cents per share in the second quarter of 2020, narrower than the year-ago quarter’s reported loss of $1.28. The loss was also narrower than the Zacks Consensus Estimate of a loss of 30 cents.

Including the one-time expenses, AMAG posted a loss of 39 cents per share in the second quarter,  compared with the year-ago quarter’s loss of $3.58.

Quarterly revenues of $52.8 million fell 32.1% from $77.8 million a year ago. The top line also missed the Zacks Consensus Estimate of $56 million.This decrease was due to the negative impact of COVID-19.

Quarter in Detail

Makena’s second-quarter revenues totaled $22.3 million, a decrease of 27% year over year.

Feraheme sales were $29.6 million in the second quarter, a decline of 30% year over year.

Intrarosa generated sales worth $1.2 million in the reported quarter compared with $4.9 million in the prior year.

During the quarter, AMAG completed the divestment of Intrarosa and Vyleesi, which reduced operating expenses.

Research and development (R&D) expenses totaled $8.2 million compared with $13.9 million in the year-ago quarter. This decrease was mainly related to lower costs for Vyleesi following FDA approval in 2019 and COVID-19 related delays in clinical studies.

Selling, general and administrative (SG&A) expenses decreased about 49.4% to $37.1  million in the second quarter of 2020. This decrease was attributable to decreases in marketing spend related to women’s health assets and reduced compensation-related costs as a result of the May 2020 restructuring.

2020 Guidance

The company re issued the financial guidance for 2020 and expects total revenues of $225-$255 million.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed an upward trend in fresh estimates. The consensus estimate has shifted 12.07% due to these changes.

VGM Scores

At this time, AMAG Pharmaceuticals has a nice Growth Score of B, a grade with the same score on the momentum front. However, 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 C. 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. Notably, AMAG Pharmaceuticals has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

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