Why Is SpringWorks Therapeutics (SWTX) Up 11.7% Since Last Earnings Report?
A month has gone by since the last earnings report for SpringWorks Therapeutics (SWTX). Shares have added about 11.7% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is SpringWorks Therapeutics 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 drivers.
SpringWorks Q2 Earnings Beat, Ogsiveo Drives Revenues
SpringWorks incurred a loss of 54 cents per share in the second quarter of 2024, significantly narrower than the Zacks Consensus Estimate of a loss of $1.12. The company had reported a loss of $1.25 per share in the year-ago quarter.
In the second quarter, total revenues were $59.7 million, which also comprehensively beat the Zacks Consensus Estimate of $35 million.
Total revenues comprised net product sales of Ogsiveo and other revenues. The company did not generate any revenues in the year-ago quarter.
Quarter in Detail
Net product revenues from Ogsiveo surged 91.4% on a sequential basis to $40.2 million, driven by a strong commercial launch and high demand for the drug.
Other revenues were $19.5 million in the second quarter.
Research and development expenses totaled $44.4 million in the second quarter, up 23.7% from the year-ago quarter’s level, owing to higher costs related to drug manufacturing and increased expenses related to ongoing clinical studies and employee costs.
Selling, general and administrative expenses totaled $57.8 million, up around 23% year over year due to higher costs to support the launch of Ogsiveo in the United States as well as preparations for the launch of mirdametinib, upon potential approval.
As of Jun 30, 2024, SpringWorks had cash, cash equivalents and marketable securities worth $521.9 million compared with $573 million as of Mar 31, 2024.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
The consensus estimate has shifted 26.56% due to these changes.
VGM Scores
At this time, SpringWorks Therapeutics has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. However, 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 F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise SpringWorks Therapeutics has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
SpringWorks Therapeutics belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Apellis Pharmaceuticals, Inc. (APLS), has gained 4.3% over the past month. More than a month has passed since the company reported results for the quarter ended June 2024.
Apellis Pharmaceuticals reported revenues of $199.69 million in the last reported quarter, representing a year-over-year change of +110.3%. EPS of -$0.28 for the same period compares with -$1.02 a year ago.
Apellis Pharmaceuticals is expected to post a loss of $0.27 per share for the current quarter, representing a year-over-year change of +76.9%. Over the last 30 days, the Zacks Consensus Estimate has changed -5.7%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Apellis Pharmaceuticals. Also, the stock has a VGM Score of D.
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