Why Is Acorda (ACOR) Down 8.4% Since the Last Earnings Report?

It has been about a month since the last earnings report for Acorda Therapeutics, Inc. ACOR. Shares have lost about 8.4% in that time frame, underperforming the market.

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

Acorda First Quarter Loss Wider Than Expected, Revenues Miss

Acorda Therapeutics reported loss of $0.25 per share in the first quarter of 2017 (including the impact of stock-based compensation expenses), wider than the Zacks Consensus Estimate of a loss of $0.16. The company had reported a gain of $0.09 per share in the year-ago quarter.

Including the impact of stock-based compensation expenses as well as other non-recurring items, first-quarter loss amounted to $0.41 per share. The company had incurred a loss of $0.01 per share a year ago.

Total revenue came in at $119.4 million, up 3%. Revenues missed the Zacks Consensus Estimate of $126 million by 5.2%.

Quarter in Detail

The majority of Acorda’s net product revenue was generated by Ampyra, which raked in sales of $112 million in the reported quarter. Revenues grew 2% year over year but decreased 15.3% sequentially.

Ampyra is marketed in ex-U.S. markets by Biogen under the trade name Fampyra. Biogen pays royalties to Acorda on outside U.S. sales. Fampyra royalties were $2.5 million, flat year over year.

Zanaflex capsules and tablets (including authorized generic capsules) recorded revenues and royalties of $1.7 million, up 41.6% from the year-ago period.

Acorda’s research and development (R&D) expenses (including stock-based compensation expenses) increased 4.3% year over year to $46.5 million due to increased investment in late-stage programs (INBRIJA or CVT-301 and tozadenant) as well as the addition of Biotie’s R&D expenses. Last September, Acorda acquired the remaining stake in Biotie, thereby completing its acquisition.

Selling, general and administrative (SG&A) expenses (including stock-based compensation expenses and Biotie transaction costs) decreased 1% to $51.7 million.

2017 Guidance

The company maintains its Ampyra net sales guidance in the range of $535–$545 million.

The company lowered its R&D expenses for 2017 and the costs are now expected in the range of $160–$170 million (old guidance: $185–$195 million), excluding share-based compensation.

The company also lowered its SG&A expense guidance to a range of $170–$180 million (old guidance: $195–$205 million), excluding share-based compensation.

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.

Acorda Therapeutics, Inc. Price and Consensus

Acorda Therapeutics, Inc. Price and Consensus | Acorda Therapeutics, Inc. Quote

VGM Scores

At this time, Acorda's stock has a poor Growth Score of 'F', however its Momentum is doing a lot better with a 'B'. Charting an 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 'C'. If you aren't focused on one strategy, this score is the one you should be interested in.

Our style scores indicate that the stock is suitable for momentum and value investors.

Outlook

Notably, the stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Click for Free Acorda Therapeutics, Inc. (ACOR) Stock Analysis Report >>
 
To read this article on Zacks.com click here.