On Wednesday, BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) stock was downgraded by William Blair from Outperform to Market Perform following the company's third-quarter earnings release. After the markets closed on Tuesday, BioMarin announced financial results that exceeded both the firm's and the consensus estimates, with a significant increase in revenue largely attributed to the sales of aldurazyme.
BioMarin's revenue for the third quarter reached $746 million, marking a 28% rise year-over-year and surpassing the anticipated $698.6 million and the consensus of $706.5 million. Its GAAP net income was reported at $106 million, or $0.55 per share, which was higher than the estimated $98.1 million, or $0.49 per share, and consensus of $102 million, or $0.51 per share.
The company has also updated its full-year 2024 revenue guidance, now expecting it to be between $2.790 billion and $2.825 billion, a slight increase from the previous range of $2.750 billion to $2.825 billion. Moreover, BioMarin has raised its non-GAAP operating margin guidance to 26.5% to 27.5% and its non-GAAP diluted EPS guidance to $3.25 to $3.35, up from the prior $3.10 to $3.25.
As of September 30, 2024, BioMarin reported having approximately $1.5 billion in cash, cash equivalents, and marketable securities. The updated financial model now projects a net gain of $412 million, or $2.14 per share, for the full year 2024. Despite the positive earnings report, the downgrade reflects a shift in the market performance outlook for BioMarin by William Blair.
In other recent news, BioMarin Pharmaceutical Inc. has seen a series of adjustments to its stock price targets by various analysts. Canaccord Genuity cut its target to $84 from $93, maintaining a hold rating, citing anticipated competition for the company's drug Voxzogo and a recent slight miss in quarterly earnings.
Leerink Partners also reduced the company's price target to $105 from $132, while maintaining an outperform rating, emphasizing BioMarin's commitment to achieving its revenue target of approximately $4 billion in 2027.
Citi lowered its price target to $81 while maintaining a neutral rating, despite BioMarin's enzyme replacement therapy business delivering better-than-expected outcomes. Raymond James resumed coverage of BioMarin with an outperform rating, expressing optimism for the company's prospects, while Barclays lowered its price target to $86, maintaining an overweight rating.
Goldman Sachs, however, maintained a buy rating and a $139.00 price target, echoing BioMarin's confidence in achieving approximately $4 billion in total revenue by FY27. These adjustments and ratings reflect the recent developments for BioMarin Pharmaceutical Inc.
InvestingPro Insights
BioMarin Pharmaceutical Inc.'s recent financial performance aligns with several key metrics and insights from InvestingPro. The company's revenue growth of 15.83% over the last twelve months, as reported by InvestingPro, supports the strong Q3 results mentioned in the article. The quarterly revenue growth of 19.61% in Q2 2024 indicates a consistent upward trend, which is reflected in BioMarin's updated full-year guidance.
InvestingPro Tips highlight that BioMarin is "trading at a low P/E ratio relative to near-term earnings growth," with a PEG ratio of 0.34. This suggests that the stock may be undervalued considering its growth prospects, which could be of interest to investors following the William Blair downgrade.
Moreover, the company's profitability is emphasized by another InvestingPro Tip stating that BioMarin has been "profitable over the last twelve months." This is consistent with the positive earnings report and increased EPS guidance mentioned in the article.
For readers seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for BioMarin Pharmaceutical Inc., providing a deeper understanding of the company's financial health and market position.
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