Alkermes (NASDAQ:ALKS) Posts Quarterly Earnings Results, Beats Estimates By $0.17 EPS

Alkermes (NASDAQ:ALKS) posted its quarterly earnings data on Tuesday. The company reported $0.09 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.08) by $0.17, Zacks reports. The company had revenue of $480.13 million for the quarter, compared to the consensus estimate of $463.48 million. Alkermes had a net margin of 3.96% and a return on equity of 4.15%. The firm’s revenue was up 21.8% compared to the same quarter last year. During the same period last year, the company earned $0.49 earnings per share.

Here are the key takeaways from Alkermes’ conference call:

• Proprietary product sales rose 31% year over year to $417.3 million in Q3, supported by the addition of LUMRYZ and continued demand growth across VIVITROL, ARISTADA, and LYBALVI.
• LUMRYZ reached approximately 4,100 patients on therapy, while LYBALVI prescription volume is expected to grow nearly 20% next year following expanded payer access to roughly 80% of covered lives.
• LYBALVI’s gross-to-net adjustment was approximately 42% in Q3 and is expected to rise to about 45% in 2027, which may delay the conversion of prescription growth into net-sales growth.
• Alkermes reported strong pipeline momentum, including ongoing Phase III narcolepsy studies for alixorexton, an expanding ALKS 7290 program in ADHD and major depressive disorder, and planned Phase II testing of ALKS 4510 in fatigue.
• The company expects a data-rich 2027, with idiopathic hypersomnia results for alixorexton around year-end 2026 or early 2027, narcolepsy Phase III readouts beginning in mid-2027, and additional ADHD and fatigue data later in 2027; full 2027 financial guidance will be provided in February.

Alkermes Stock Performance

NASDAQ:ALKS traded down $0.19 during mid-day trading on Wednesday, reaching $45.50. 621,619 shares of the company’s stock were exchanged, compared to its average volume of 2,121,788. Alkermes has a one year low of $27.00 and a one year high of $55.67. The firm has a market capitalization of $7.63 billion, a PE ratio of 119.72 and a beta of 0.32. The business’s fifty day simple moving average is $43.92 and its two-hundred day simple moving average is $40.59. The company has a debt-to-equity ratio of 0.82, a quick ratio of 1.85 and a current ratio of 2.30.

Trending Headlines about Alkermes

Here are the key news stories impacting Alkermes this week:

• Positive Sentiment: Alkermes reported third-quarter earnings of $0.09 per share, versus analysts’ expectation of a $0.08-per-share loss. Revenue of $480.1 million also topped estimates of $463.5 million and rose 21.8% year over year. Article: Alkermes Surpasses Q3 Earnings and Revenue Estimates
• Positive Sentiment: Management reiterated its fourth-quarter proprietary net-sales outlook of $400 million to $420 million and expects Phase III data for alixorexton around mid-2027, providing a near-term sales target and a future development milestone. Article: Alkermes reiterates sales outlook and alixorexton data timing
• Positive Sentiment: Royal Bank of Canada raised its price target to $57 and maintained an “outperform” rating. HC Wainwright also lifted its target, to $50, while retaining a “neutral” rating. Royal Bank of Canada ratings
• Neutral Sentiment: EVP David Gaffin sold 2,035 shares, about 0.92% of his holdings. The sale was made under a pre-arranged Rule 10b5-1 plan, making it a less direct signal of a change in his outlook. Article: Alkermes insider transaction
• Negative Sentiment: Despite beating estimates, quarterly profit was reported at $16 million and earnings were down from $0.49 per share a year earlier. The year-over-year decline could offset some of the positive surprise. Article: Alkermes records lower Q3 profit
• Negative Sentiment: A commentary piece says ALKS could be overvalued following the launch of the ALKS 7290 trial, raising a potential concern about the stock’s valuation. Article: Alkermes stock could be overvalued

Analyst Upgrades and Downgrades

ALKS has been the topic of several recent research reports. Truist Financial started coverage on shares of Alkermes in a research note on Friday, October 16th. They issued a “buy” rating and a $55.00 price target on the stock. Mizuho upgraded shares of Alkermes to a “strong-buy” rating in a report on Wednesday, September 16th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Alkermes in a research report on Friday, August 7th. HC Wainwright upped their target price on shares of Alkermes from $43.00 to $50.00 and gave the company a “neutral” rating in a report on Wednesday. Finally, Piper Sandler reiterated an “overweight” rating and set a $65.00 target price (up from $43.00) on shares of Alkermes in a research note on Tuesday, July 28th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $55.06.

Insiders Place Their Bets

In other Alkermes news, EVP David Gaffin sold 2,035 shares of the business’s stock in a transaction dated Tuesday, November 3rd. The shares were sold at an average price of $46.17, for a total value of $93,955.95. Following the completion of the sale, the executive vice president owned 219,353 shares of the company’s stock, valued at $10,127,528.01. The trade was a 0.92% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Craig C. Hopkinson sold 9,000 shares of the business’s stock in a transaction dated Tuesday, September 1st. The shares were sold at an average price of $46.99, for a total transaction of $422,910.00. Following the completion of the sale, the executive vice president directly owned 65,389 shares of the company’s stock, valued at $3,072,629.11. This represents a 12.10% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 22,679 shares of company stock worth $1,070,940 in the last quarter. 4.59% of the stock is currently owned by corporate insiders.

Alkermes Company Profile

Alkermes plc (NASDAQ:ALKS) is a biopharmaceutical company focused on developing and commercializing medicines for central nervous system diseases. Its research and development activities address conditions including schizophrenia, bipolar disorder, addiction, depression and other neuropsychiatric disorders.

The company’s marketed products include Vivitrol, an extended-release injectable form of naltrexone used to treat alcohol dependence and prevent relapse to opioid dependence; Aristada and Aristada Initio, long-acting injectable formulations of aripiprazole lauroxil for the treatment of schizophrenia; and Lybalvi, a combination of olanzapine and samidorphan approved for schizophrenia and bipolar I disorder in adults.

Founded in 1987, Alkermes is incorporated in Ireland and maintains its corporate headquarters in Waltham, Massachusetts.