Alkermes (NASDAQ:ALKS) Releases Quarterly Earnings Results, Misses Expectations By $0.14 EPS

Alkermes (NASDAQ:ALKS) posted its earnings results on Wednesday. The company reported $0.29 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.43 by ($0.14), FiscalAI reports. The business had revenue of $384.55 million for the quarter, compared to analysts’ expectations of $380.44 million. Alkermes had a net margin of 22.27% and a return on equity of 21.81%. Alkermes’s quarterly revenue was down 10.6% on a year-over-year basis. During the same period last year, the firm posted $1.05 earnings per share. Alkermes updated its FY 2026 guidance to -0.798–0.680 EPS.

Here are the key takeaways from Alkermes’ conference call:

• Alkermes reiterates strong 2026 financial guidance with total revenue expected between $1.73B–$1.84B and adjusted EBITDA of $370M–$410M, while emphasizing adjusted EBITDA as more reflective of cash flow despite a GAAP loss driven by acquisition accounting.
• The Avadel acquisition is closed and immediately expands Alkermes into sleep medicine via LUMRYZ, which generated ~$279M in 2025 and is forecast to deliver ~$350M–$370M in 2026 (Alkermes expects ~$315M–$335M contribution for the remainder of the year).
• Lead orexin program alixorexton received FDA Breakthrough Therapy designation and is planned to enter global Phase 3 (Brilliance) in narcolepsy this quarter, with three randomized studies (MWT primary) and both once‑daily and split‑dosing regimens included.
• 2026 will feature materially higher non‑cash and one‑time charges — including a ~$150M inventory step‑up to be expensed as sold, ~$50M transaction costs, and new term debt of $1.525B — contributing to an expected GAAP net loss (~$115M–$135M) and higher net interest expense.
• Alkermes is broadening its orexin pipeline beyond narcolepsy, advancing ALKS‑7290 toward Phase 2 in ADHD and ALKS‑4510 toward Phase 2 in MS/Parkinson’s fatigue this year, signaling diversification of future growth opportunities.

Alkermes Trading Down 4.5%

Shares of Alkermes stock traded down $1.51 on Wednesday, hitting $31.88. 1,022,815 shares of the company traded hands, compared to its average volume of 1,958,900. Alkermes has a 52 week low of $25.17 and a 52 week high of $36.32. The company has a market cap of $5.26 billion, a PE ratio of 15.93 and a beta of 0.49. The stock’s 50 day moving average price is $31.38 and its 200-day moving average price is $30.17.

Wall Street Analyst Weigh In

ALKS has been the subject of several research analyst reports. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Alkermes in a research report on Monday, December 29th. Zacks Research downgraded Alkermes from a “strong-buy” rating to a “hold” rating in a research report on Thursday, February 19th. Needham & Company LLC lifted their target price on Alkermes from $43.00 to $44.00 and gave the company a “buy” rating in a research note on Wednesday, October 29th. Wall Street Zen lowered Alkermes from a “strong-buy” rating to a “buy” rating in a research note on Sunday, November 9th. Finally, Bank of America upped their price objective on Alkermes from $33.00 to $34.00 and gave the stock a “neutral” rating in a report on Friday, February 20th. One research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and five have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $44.00.

Insiders Place Their Bets

In related news, Director Shane Cooke sold 61,200 shares of Alkermes stock in a transaction dated Monday, February 2nd. The stock was sold at an average price of $34.57, for a total value of $2,115,684.00. Following the completion of the sale, the director directly owned 103,744 shares in the company, valued at $3,586,430.08. The trade was a 37.10% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, EVP Craig C. Hopkinson sold 9,000 shares of the firm’s stock in a transaction dated Monday, February 2nd. The shares were sold at an average price of $33.93, for a total transaction of $305,370.00. Following the transaction, the executive vice president directly owned 57,740 shares in the company, valued at $1,959,118.20. This trade represents a 13.49% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 148,148 shares of company stock valued at $5,028,378. 4.40% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Alkermes

Several institutional investors and hedge funds have recently added to or reduced their stakes in ALKS. State Street Corp boosted its holdings in shares of Alkermes by 10.9% in the 4th quarter. State Street Corp now owns 9,472,858 shares of the company’s stock valued at $265,051,000 after buying an additional 932,507 shares in the last quarter. Renaissance Technologies LLC grew its holdings in Alkermes by 6.0% in the fourth quarter. Renaissance Technologies LLC now owns 6,668,028 shares of the company’s stock worth $186,571,000 after purchasing an additional 375,500 shares during the last quarter. JPMorgan Chase & Co. lifted its holdings in shares of Alkermes by 32.0% during the 4th quarter. JPMorgan Chase & Co. now owns 5,184,547 shares of the company’s stock valued at $145,064,000 after purchasing an additional 1,256,377 shares during the last quarter. Dimensional Fund Advisors LP boosted its position in shares of Alkermes by 19.3% in the 4th quarter. Dimensional Fund Advisors LP now owns 4,412,783 shares of the company’s stock worth $123,467,000 after purchasing an additional 714,787 shares in the last quarter. Finally, Holocene Advisors LP increased its position in Alkermes by 31.2% during the 2nd quarter. Holocene Advisors LP now owns 2,853,768 shares of the company’s stock valued at $81,646,000 after buying an additional 679,166 shares in the last quarter. Hedge funds and other institutional investors own 95.21% of the company’s stock.

Alkermes News Summary

Here are the key news stories impacting Alkermes this week:

• Positive Sentiment: Wolfe Research initiated coverage with an “outperform” rating and $45 price target — provides a bullish analyst catalyst and a sizable upside to current levels. Wolfe Research initiation
• Positive Sentiment: Board announced an orderly CEO succession: Richard Pops will retire July 31, 2026, and COO Blair Jackson will become CEO Aug. 1, 2026 — reduces leadership uncertainty and signals continuity. CEO Succession Press Release
• Neutral Sentiment: Alkermes to present at the TD Cowen Health Care Conference — visibility event for investors but not an immediate earnings driver. Conference presentation
• Neutral Sentiment: Media noted the company recently closed the Avadel acquisition ahead of these results — strategic context for revenue/growth but impact depends on integration and margins. Avadel acquisition coverage
• Neutral Sentiment: Reported short-interest data in the feed is noisy/zeroed out and not informative for near‑term squeezes (no clear signal).
• Negative Sentiment: Q4 EPS missed: Alkermes reported $0.29 EPS vs. consensus $0.43, and revenue $384.6M (slightly above estimates) with revenue down ~10.6% y/y — suggests margin pressure and weaker profitability versus expectations. Earnings press release / slides Conference call
• Negative Sentiment: Crucial FY‑2026 guidance missed expectations: Alkermes updated EPS guidance to -0.798 to -0.680 vs. consensus ~1.63 — a materially weaker profitability outlook that explains the negative market reaction despite revenue guidance near street. FY2026 guidance press release

Alkermes Company Profile

Alkermes plc is a biopharmaceutical company focused on developing innovative medicines to address unmet needs in the central nervous system (CNS). The company applies its proprietary drug delivery technologies and therapeutic expertise to advance treatments for addiction, schizophrenia, bipolar I disorder and depression. Alkermes’ portfolio includes both commercial products and a pipeline of investigational therapies designed to improve patient outcomes and support long-term disease management.

Alkermes’ commercial franchise features several approved products.