Alkermes's Earnings: A Preview

Alkermes ALKS is gearing up to announce its quarterly earnings on Thursday, 2024-10-24. Here's a quick overview of what investors should know before the release.

Analysts are estimating that Alkermes will report an earnings per share (EPS) of $0.74.

Anticipation surrounds Alkermes's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Overview of Past Earnings

The company's EPS beat by $0.02 in the last quarter, leading to a 5.77% increase in the share price on the following day.

Here's a look at Alkermes's past performance and the resulting price change:

Performance of Alkermes Shares

Shares of Alkermes were trading at $28.1 as of October 22. Over the last 52-week period, shares are up 22.14%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analysts' Perspectives on Alkermes

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Alkermes.

Analysts have provided Alkermes with 7 ratings, resulting in a consensus rating of Outperform. The average one-year price target stands at $41.14, suggesting a potential 46.41% upside.

Analyzing Analyst Ratings Among Peers

The following analysis focuses on the analyst ratings and average 1-year price targets of Ultragenyx Pharmaceutical, TG Therapeutics and Blueprint Medicines, three prominent industry players, providing insights into their relative performance expectations and market positioning.

• The consensus outlook from analysts is an Outperform trajectory for Ultragenyx Pharmaceutical, with an average 1-year price target of $91.64, indicating a potential 226.12% upside.
• The prevailing sentiment among analysts is an Buy trajectory for TG Therapeutics, with an average 1-year price target of $38.0, implying a potential 35.23% upside.
• Analysts currently favor an Buy trajectory for Blueprint Medicines, with an average 1-year price target of $126.6, suggesting a potential 350.53% upside.

Peer Metrics Summary

Within the peer analysis summary, vital metrics for Ultragenyx Pharmaceutical, TG Therapeutics and Blueprint Medicines are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Alkermes ranks at the bottom for Revenue Growth and Gross Profit, while it is in the middle for Return on Equity.

About Alkermes

Alkermes PLC is a fully integrated biotechnology company that applies its proprietary technologies to research, develop, and commercialize pharmaceutical products designed for unmet medical needs in therapeutic areas. The company utilizes several to develop and commercialize products and, in so doing, access technological, financial, marketing, manufacturing, and other resources. Alkermes either purchases active drug products from third parties or receives them from its third-party licensees to formulate products using its technologies. It operates in U.S., which derives maximum revenue, Ireland and Rest of the world.

Breaking Down Alkermes's Financial Performance

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

Negative Revenue Trend: Examining Alkermes's financials over 3 months reveals challenges. As of 30 June, 2024, the company experienced a decline of approximately -35.35% in revenue growth, reflecting a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Health Care sector.

Net Margin: Alkermes's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 22.89% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 7.2%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): Alkermes's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 4.22%, the company showcases efficient use of assets and strong financial health.

Debt Management: Alkermes's debt-to-equity ratio is below the industry average at 0.29, reflecting a lower dependency on debt financing and a more conservative financial approach.

To track all earnings releases for Alkermes visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.