Why Is Acorda (ACOR) Down 54.7% Since Last Earnings Report?

It has been about a month since the last earnings report for Acorda Therapeutics (ACOR). Shares have lost about 54.7% in that time frame, underperforming the S&P 500.

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

Acorda Q4 Earnings Top Estimates, Revenues Fall Y/Y

Acorda reported fourth-quarter 2019 loss per share of 15 cents, much narrower than the Zacks Consensus Estimate of a loss of 41 cents. However, the figure came in against the year-ago earnings of 45 cents.

The company generated total revenues of $50.5 million in the fourth quarter, beating the Zacks Consensus Estimate of $45.1 million. However, sales declined 26.9% year over year due to lower sales of Ampyra.

Quarter in Detail

Inbrija registered sales of $6.1 million in the reported quarter, accounting for a sequential increase of 24.5%.

Notably, the majority of Acorda’s net product revenues come from Ampyra, which generated sales of $40.8 million in the fourth quarter, reflecting a 36.4% plunge year over year due to generic launches. However, sale of the drug grew 8.5% sequentially.Acorda believes that Ampyra sales will continue to see a sharp decline in the quarters ahead.

Royalty revenues were $3.1 million in the quarter, up 10.7% from the year-ago reported figure.

Research and development (R&D) expenses (excluding share-based compensation expenses) were $8.4 million, down 67.5% year over year.

Selling, general and administrative (SG&A) expenses (excluding share-based compensation expenses) were $39.2 million, up 18.8% year over year.

2020 Guidance

Acordaexpects total product revenues in the range of $120-$150 million for the full year while total revenues are projected in the band of $130-$160 million.

Inbrija’s net revenues for the full year are predicted in the bracket of $35-$40 million.

For 2020, the company envisions Ampyra net revenues within $85-$110 million. Operating expenses for the period are forecast within $170-$180 million, lowered from the previous range of $180-190 million.

How Have Estimates Been Moving Since Then?

Estimates revision followed an upward path over the past two months.

VGM Scores

At this time, Acorda has a poor Growth Score of F, however its Momentum Score is doing a lot better with an A. Following the exact same course, the stock was allocated a grade of A on the value side, putting it in the top quintile 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

Acorda has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.