Why is Amicus Therapeutics (FOLD) up 13.7% since its last earnings report?

A month has passed since Amicus Therapeutics (FOLD) last reported earnings. Shares have risen about 13.7% in that time, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Amicus Therapeutics headed for a decline? 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 better understand the important catalysts.

Amicus third-quarter results were higher, estimates miss sales at Galafold

Amicus Therapeutics reported a loss of 12 cents per share for the third quarter of 2022, narrower than the Zacks Consensus Estimate of a loss of 19 cents. In the same quarter last year, the company reported an adjusted loss of 19 cents per share.

Revenues rose 2.7% year-over-year to $81.7 million in the third quarter, missing the Zacks Consensus Estimate of $85 million. Revenue was generated from sales of Galafold (migalastat), approved for the treatment of Fabry disease. On a constant currency (cc) basis, total revenue growth was 14% year-on-year.

Quarter in detail

Third-quarter revenues were driven by strong new patient volumes but were partially offset by order timing in certain non-U.S. markets and foreign currency impacts.

Operating expenses (adjusted) were $85.5 million, down 8.7% year-over-year.

As of September 30, 2022, Amicus Therapeutics had cash, cash equivalents and marketable securities of $354.7 million compared to $368.8 million as of June 30, 2022.

Maintains the guidelines for 2022

For the full year, Amicus Therapeutics expects total Galafold revenue growth in the CER range of 15% to 20% due to continued demand from geographic expansion, continued diagnosis of new Fabry syndrome patients, and commercial execution in all major markets, including the United States United States, European Union, Great Britain and Japan.

Adjusted operating costs for the year have been updated and are now estimated at $430-440 million, down from the previous estimate of $470-485 million. The decline can be attributed to prudent expense management and offset by continued investment in Galafold’s global launch, AT-GAA clinical trials and pre-market activities.

How have estimates changed since then?

It turns out that the fresh estimates have not changed over the last month.

The consensus estimate changed by 25.76% as a result of these changes.

VGM results

Over this time, Amicus Therapeutics has a great Growth Score of A, although it lags well behind its Momentum Score with a Value of C. Plotting a somewhat similar path, the stock is rated a D on the Value side, meaning it’s in the bottom 40% for this investment strategy.

Overall, the stock has a Total VGM Score of B. If you’re not focused on one strategy, this score should interest you.

Perspectives

Amicus Therapeutics has a Zacks Rank #3 (Hold). We expect a turnaround in the line over the next few months.

Industry player performance

Amicus Therapeutics belongs to the Zacks Medical – Biomedical & Genetics industry. Another company in the same industry, Horizon Therapeutics (HZNP), gained 25.7% in the past month. It has been over a month since the company announced its results for the quarter ended September 2022.

In the most recent quarter, Horizon Therapeutics reported revenue of $925.36 million, representing a year-over-year change of -10.8%. EPS of $1.25 in the same period compared to $1.75 a year ago.

Horizon Therapeutics is expected to report earnings per share of $1.10 for the current quarter, which would represent a year-over-year change of -22%. Over the past 30 days, the Zacks Consensus Estimate has moved +1.9%.

Horizon Therapeutics carries a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Rating of A.

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