Yahoo Finance Why Is Apellis Pharmaceuticals (APLS) Down 1.9% Since Last Earnings Report?
It has been about a month since the last earnings report for Apellis Pharmaceuticals, Inc. (APLS). Shares have lost about 1.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Apellis 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.
Apellis’ Q1 Earnings Match Estimates, Revenues Beat
Apellisincurred first-quarter 2024 loss of 54 cents per share, which matched the Zacks Consensus Estimate. The company had incurred a loss of $1.56 per share in the year-ago quarter.
Total revenues amounted to $172.3 million in the reported quarter, beating the Zacks Consensus Estimate of $160.5 million. In the year-ago quarter, the company had reported revenues of $44.8 million.
The top line skyrocketed 284% year over year, owing to higher sales of Syfovre (pegcetacoplan injection) in the first quarter.
Quarter in Detail
Revenues in the reported quarter included product sales of the marketed drugs — Empaveli (pegcetacoplan) and Syfovre — and licensing and other revenues under the collaboration agreement with Sobi.
Syfovre recorded sales of $137.5 million in the first quarter, which increased 20.3% sequentially, owing to continued strong demand. Syfovre sales beat the Zacks Consensus Estimate of $132.5 million as well as our model estimate of $120.1 million for the reported quarter.
Apellis delivered more than 72,000 commercial vials and nearly 5,000 samples of Syfovre to doctors in the first quarter. As of Mar 31, 2024, the total number of doses of the drug delivered since launch was 250,000.
The potential approval and successful launch of Syfovre in additional geographies will add an incremental stream of revenues to APLS in the future.
Last year, the company received the permanent J-code for Syfovre, which is set to help the company streamline billing and reimbursement of the medicine.
Empaveli recorded sales of $25.6 million in the reported quarter, up 25.5% from the year-ago quarter’s figure, owing to the increasing number of patient switches from AstraZeneca’s Ultomiris (eculizumab).
Empaveli sales beat the Zacks Consensus Estimate of $25.5 million as well as our model estimate of $24.5 million.
Empaveli is approved in the United States for the treatment of paroxysmal nocturnal hemoglobinuria. The drug is also approved in Europe under the brand name Aspaveli for the same indication.
Licensing and other revenues came in at $9.3 million, up 55% year over year.
Research and development expenses decreased 23% from the prior-year quarter’s level to $84.7 million. This was due to a decrease in program-specific external costs and other external costs.
General and administrative expenses totaled $129.5 million, up 26.8% year over year. This was due to higher employee-related costs, an increase in professional and consulting fees and general commercial preparation activities, and higher office costs.
As of Mar 31, 2024, Apellis had cash, cash equivalents and marketable securities worth $325.9 million compared with $351.2 million as of Dec 31, 2023. APLS expects its cash balance, combined with cash anticipated from sales of marketed products, to be enough to fund its operations in the foreseeable future.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
The consensus estimate has shifted 11.36% due to these changes.
VGM Scores
At this time, Apellis Pharmaceuticals has a subpar Growth Score of D, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of F on the value side, putting it in the bottom 20% 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 upward for the stock, and the magnitude of these revisions looks promising. Notably, Apellis Pharmaceuticals 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
Apellis Pharmaceuticals belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Incyte (INCY), has gained 10.3% over the past month. More than a month has passed since the company reported results for the quarter ended March 2024.
Incyte reported revenues of $880.89 million in the last reported quarter, representing a year-over-year change of +8.9%. EPS of $0.64 for the same period compares with $0.37 a year ago.
For the current quarter, Incyte is expected to post earnings of $1.14 per share, indicating a change of +15.2% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.4% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Incyte. Also, the stock has a VGM Score of B.
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