Mirum Pharmaceuticals (MIRM) Down 12.5% Since Last Earnings Report: Can It Rebound?

It has been about a month since the last earnings report for Mirum Pharmaceuticals, Inc. (MIRM). Shares have lost about 12.5% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Mirum 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 drivers.

Mirum's Q4 Earnings Lag Estimates, Revenues Beat

Mirum reported a fourth-quarter 2023 loss of 66 cents per share, wider than the Zacks Consensus Estimate of a loss of 34 cents. The company had incurred a loss of 99 cents per share in the year-ago quarter.

Revenues in the fourth quarter totaled $69.6 million, up 149.2% year over year. The figure also beat the Zacks Consensus Estimate of $67 million. The top line comprised Livmarli sales and Cholbam and Chenodal sales.

Quarter in Detail

Livmarli’s net product sales were $41.4 million in the fourth quarter, reflecting an increase of almost 63% year over year.

Net product sales of newly acquired Cholbam and Chenodal were $28.1 million, representing the first full quarter sales with these two medicines under Mirum's leadership.

Research and development expenses declined 0.5% year over year to $30.9 million.

Selling, general and administrative expenses totaled $46.2 million, up 74.5% from the year-ago quarter’s level.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in fresh estimates.

The consensus estimate has shifted -72.41% due to these changes.

VGM Scores

At this time, Mirum Pharmaceuticals has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Mirum Pharmaceuticals has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.

Performance of an Industry Player

Mirum Pharmaceuticals is part of the Zacks Medical - Biomedical and Genetics industry. Over the past month, Halozyme Therapeutics (HALO), a stock from the same industry, has gained 2.2%. The company reported its results for the quarter ended December 2023 more than a month ago.

Halozyme Therapeutics reported revenues of $230.04 million in the last reported quarter, representing a year-over-year change of +26.7%. EPS of $0.82 for the same period compares with $0.48 a year ago.

Halozyme Therapeutics is expected to post earnings of $0.75 per share for the current quarter, representing a year-over-year change of +59.6%. Over the last 30 days, the Zacks Consensus Estimate has changed -2.1%.

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

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Mirum Pharmaceuticals, Inc. (MIRM) : Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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