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Why Is Sucampo (SCMP) Up 1.5% Since the Last Earnings Report?

A month has gone by since the last earnings report for Sucampo Pharmaceuticals, Inc.SCMP . Shares have added about 1.5% in that time frame, outperforming the market.

Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? 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.

Sucampo Misses Q1 Earnings, 2017 View Updated

Sucampo reported adjusted earnings of $0.23 per share in the first quarter of 2017, lower than the Zacks Consensus Estimate of $0.26. Reported earnings were up by 9.5% from the year-ago figure of $0.21.

Total revenue came in at $56.3 million, up 19.2% from the year-ago quarter but in line with the Zacks Consensus Estimate of $56 million, driven by the higher Amitiza sales in Japan.

Quarter in Detail

Product sales were $34.2 million, up 28.4% year over year, and product royalty revenues were $18.4 million, up 10.3% year over year.

Sales of Amitiza, Sucampo's marketed product, as reported by Takeda Pharmaceutical for royalty calculation purposes, in the U.S. were $102.4 million, up 12%. Takeda holds the global marketing rights for Amitiza outside Japan and China and pays royalties to Sucampo. Total prescriptions for the product in the U.S. were also up 5%.

Adjusted EBITDA was $28 million, up 28% year over year.

In Mar 2017, Sucampo received a Paragraph IV certification notice letter for an Abbreviated New Drug Application (ANDA) submitted to the FDA by Amneal Pharmaceuticals requesting approval to market a generic version of the 8 mcg and 24 mcg Amitiza soft gelatin capsule products. However, in Apr 2017, a patent infringement lawsuit was filed by Takedaagainst Amneal.

2017 Guidance Updated

Sucampo updated its guidance for the full-year 2017. The company expects total revenue in the range of $220.0 million to $230.0 million. The company lowered its adjusted net income guidance in the band of $56 million to $66 million from $80.0 million to $90.0 million, and adjusted earnings in the range of $1.00 to $1.10 per share from its earlier expectation of $1.35 to $1.50 per share.

The company forecasts adjusted EBITDA of $109.0 million to $119.0 million down from its earlier guidance of $145.0 million to $155.0 million. Adjusted EBITDA guidance excludes stock option related costs of $6.0 million.

The guidance were lowered to incorporate the cost of acquisition of Vtesee.

How Have Estimates Been Moving Since Then?

Analysts were quiet during the last one month period as none of them issued any earnings estimate revisions.

Sucampo Pharmaceuticals, Inc. Price and Consensus

Sucampo Pharmaceuticals, Inc. Price and Consensus | Sucampo Pharmaceuticals, Inc. Quote

VGM Scores

At this time, the stock has a nice Growth Score of 'B', a grade with the same score on the momentum front. Charting the exact same path, the stock was allocated a grade of 'B' on the value side, putting it in the top 40% for this investment strategy.

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

Based on our scores, the stock is equally suitable for value, growth and momentum investors.

Outlook

The stock has a Zacks Rank #5 (Strong Sell). We are looking for a below average return from the stock in the next few months.

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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.


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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