Time New York: Tue 25 Sep 03:12 am  |  Save 15% on H&R Block Online


Ionis (IONS) Beats on Q3 Earnings, Revenues Miss


Carlsbad, CA-based Ionis Pharmaceuticals, Inc. IONS is a drug discovery and development company that focuses on the development of products using ribonucleic acid (RNA)-based technologies. The company discovers new drugs and out-licenses them to partners for license fees, milestone payments, and royalties. Ionis has partnership agreements with several leading health care companies like Biogen and GlaxoSmithKline among others.

In this quarter, the company received $270 million in upfront fees and milestone payments from its partners. Also, during the quarter the company submitted regulatory application for approval of volanesorsen in the United States and EU.

Ionis’ earnings track record has been mixed so far. Over the four trailing quarters, the company posted an average positive earnings surprise of 21.9%, having beaten estimates in two quarters and missed the same twice.

Currently, Ionis has a Zacks Rank #1 (Strong Buy) but that could definitely change following the company’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: Ionis reported a breakeven earnings including stock based compensation which missed the Zacks Consensus Estimate of earnings of 2 cents. However, excluding stock based compensation the company reported earnings of 13 cents.

Revenues: Ionis posted revenues of $120.9 million, missing the consensus estimate of $129.48 million.

Key Stats: Research, development and patent expenses amounted to $80.2 million, down 5.2% year over year. General and administrative expenses increased almost 163% year over year to $26.8 million on increased costs related to commercialization of volanesorsen and inotersen, and increase in fees related to in-licensing of Spinraza. Spinraza saw strong uptake with $271 million in sales in this quarter, up 33.5% sequentially.

2017 Outlook: The company expects the operating expenses to increase sequentially in the fourth quarter due to costs related to launch of inotersen and volanesorsen.

Share Market Activity: Share price are down 0.02% in pre-market trading.

Zacks' Hidden Trades

While we share many recommendations and ideas with the public, certain moves are hidden from everyone but selected members of our portfolio services. Would you like to peek behind the curtain today and view them?

Starting now, for the next month, I invite you to follow all Zacks' private buys and sells in real time from value to momentum…from stocks under $10 to ETF to option movers…from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors.

Click here for Zacks' secret trade>>

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

To read this article on Zacks.com click here.

Zacks Investment Research
<-- You can share this post with your network,
or give us your opinion and leave a comment.
Be sure to check our RSS feeds for updates.