It has been about a month since the last earnings report for Pacira (PCRX). Shares have added about 5.5% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Pacira due for a pullback? 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 catalysts.

Pacira Q3 Earnings Top, Revenues Miss Despite Exparel Sales Growth

Pacira reported third-quarter 2024 adjusted earnings of 79 cents per share, which beat the Zacks Consensus Estimate of 72 cents. The company had reported adjusted earnings of 72 cents per share in the year-ago quarter.

Total revenues amounted to $168.6 million, which increased 3% year over year but missed the Zacks Consensus Estimate of $169 million.

PCRX’s Q3 Results in Detail

Pacira’s top line comprises product sales and royalty revenues. The company recognizes product revenues from the sales of its three marketed drugs — Exparel, Zilretta and iovera.

Exparel’s net product sales were $132 million, which increased 3% from the year-ago quarter figure. The reported figure beat the Zacks Consensus Estimate of $131.2 million and our model estimate of $130 million. Revenue growth from Exparel sales was partially offset by a shift in vial mix and contracted discounts.

Zilretta’s net product sales came in at $28.4 million, down slightly year over year. The reported figure missed the Zacks Consensus Estimate of $30.6 million as well as our model estimate of $30.1 million.

Net product sales of iovera were $5.7 million, up 8% from the year-ago quarter. The figure missed the Zacks Consensus Estimate of $5.99 million as well as our model estimate of $5.9 million.

Revenues generated from the sales of bupivacaine liposome injectable suspension to third-party licenses were pegged at $1.6 million, up significantly from the year-ago quarter’s figure. Royalty revenues amounted to $0.9 million in the reported quarter, up significantly year over year.

Research and development (R&D) expenses (excluding stock-based compensation) came in at $17.3 million, down 7% from the year-ago quarter due to lower product development and manufacturing capacity expansion costs as well as regulatory expenses in the reported quarter.

Selling, general and administrative (SG&A) expenses (excluding stock-based compensation) of $65 million increased 10% year over year, largely due to litigation costs as well as a rise in investments made in commercial, medical and market access organizations.

As of Sept. 30, 2024, Pacira had cash, cash equivalents and available-for-sale investments of $453.8 million compared with $404.2 million as of June 30, 2024.

PCRX Maintains 2024 Financial Guidance

Pacira reiterated its previously announced financial guidance for 2024. It expects total revenues in the band of $680-$705 million for the full year.

The company anticipates adjusted R&D expenses between $70 million and $80 million, while adjusted SG&A expenses are expected in the range of $245-$265 million.

The adjusted gross margin of the company is projected between 74% and 76% in 2024.

How Have Estimates Been Moving Since Then?

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

The consensus estimate has shifted -5.66% due to these changes.

VGM Scores

Currently, Pacira has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. However, the stock was allocated a grade of A on the value side, putting it in the top quintile 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.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Pacira has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Pacira is part of the Zacks Medical - Biomedical and Genetics industry. Over the past month, Exact Sciences (EXAS), a stock from the same industry, has gained 17.6%. The company reported its results for the quarter ended September 2024 more than a month ago.

Exact Sciences reported revenues of $708.66 million in the last reported quarter, representing a year-over-year change of +12.8%. EPS of -$0.21 for the same period compares with $0 a year ago.

Exact Sciences is expected to post a loss of $0.32 per share for the current quarter, representing a year-over-year change of -18.5%. Over the last 30 days, the Zacks Consensus Estimate has changed -200.3%.

Exact Sciences has a Zacks Rank #4 (Sell) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.

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