Aerie Pharmaceuticals, Inc. (NasdaqGM:AERI) is scheduled to report Q3 earnings results after markets close for trading on November 5, 2020.
The company is expected to report earnings of -$0.80/share on revenue of $19.459 million. The consensus earnings per share (EPS) of -$0.80/share is based on a poll of 9 analysts and represents a growth in eps of 7.5% over the same quarter last year, when the company reported earnings of -$0.86/share.
The revenue forecast of $19.459 million based on a poll of 10 analysts implies a year-over-year (YoY) growth in revenue of 4.9%. Last year the company reported $18.544 million in revenue for the quarter.
|Metric||Expected||Prior Year||YoY Change|
Earnings Call Trends
Historically, management has exceeded analyst expectations 2 out of the last 8 tracked quarters, and missed expectations 6 quarters.
What are your expectations from Aerie Pharmaceuticals, Inc. for earnings this quarter? Let us know in the comments!
In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2020, the stock price reacted by increasing 4.2%.
|Report Date||Price Day Prior||Price Next Day||Change %||Result|
|August 7, 2020||$12.10||$12.61||4.2%||Increase|
|May 6, 2020||$15.97||$14.45||−9.5%||Decline|
|February 20, 2020||$19.47||$21.59||10.9%||Increase|
|November 6, 2019||$23.82||$18.48||−22.4%||Decline|
The other question to consider is one of earnings manipulation. There is a lot of pressure on management each quarter to deliver on earnings expectations. The Beneish M-Score is a statistical model that provides some insight into whether the company might be manipulating earnings. With a Beneish M-Score of −3.63, the model suggests that the company is not likely to be an earnings manipulator. A value of −3.63 implies a 0.0% chance of earnings manipulation.
Fundamentals And Technical Analysis
Aerie Pharmaceuticals, Inc. is currently trading at $10.61/share, down −1.7% for the day. The company is trading at approximately 40.4% of its 52-week high of $26.26/share. The company’s stock price is down −15.9% since the last earnings report and up 7.1% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 45.92 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.
The current share price implies a price-to-earnings (P/E) multiple of −2.45 and a forward P/E multiple of −3.34.
Aerie Pharmaceuticals, Inc.’s current share price also implies a price-to-book (P/B) multiple of 5.50. The following table summarizes some other key fundamental ratios:
|Last Reported Fiscal Period Key||FY2020.Q2|
|Period End Date||June 30, 2020|
|Stock Price (Current)||$10.61|
|P/E Ratio (Fwd)||−3.3x|
|Total Debt / Total Capital||30.0%|
|Levered Free Cash Flow||-$142.4 million|
|EV / EBITDA||−3.1x|
Aerie Pharmaceuticals, Inc. is a small-cap stock with a market capitalization of $493.5 million and a total enterprise value of $466.6 million. The company operates in the Healthcare sector and the Pharmaceuticals industry.
Aerie Pharmaceuticals, Inc., an ophthalmic pharmaceutical company, focuses on the discovery, development, and commercialization of first-in-class therapies for the treatment of glaucoma, dry eye, retinal diseases, and other eye diseases. Its products include Rhopressa, a once-daily eye drop to reduce elevated intraocular pressure (IOP) in patients with glaucoma or ocular hypertension; and Rocklatan, a once-daily fixed-dose combination of Rhopressa and latanopros to reduce IOP to treat patients with open-angle glaucoma and ocular hypertension. The company is also developing AVX-012, a clinical-stage dry eye product candidate; and AR-1105 and AR-13503 sustained-release implants for treating retinal diseases. Aerie Pharmaceuticals, Inc. has a collaborative research, development, and licensing agreement with DSM. Aerie Pharmaceuticals, Inc. was founded in 2005 and is headquartered in Durham, North Carolina.