LGND Earnings Prediction
The chart below shows how LGND performed 10 days before and after its earnings report, based on data from the past quarters. Typically, LGND sees a -4.33% change in stock price 10 days leading up to the earnings, and a +4.39% change 10 days following the report. On the earnings day itself, the stock moves by +2.84%. This data can give you a slight idea of what to expect for the next quarter's release.
LGND Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
42.81M
52.35%
-17.37%
Gross Margin
74.08%
14.87%
-6.62%
Operating Margin
3.94%
132.97%
-81.36%
Net Margin
-72.62%
-212.21%
424.71%
EPS
-1.64
-274.47%
320.51%
No Data Available
LGND Earnings Analysis
Ligand Pharmaceuticals Inc Corporation (LGND.O) Earnings Conference Call
Positive
Royalty Revenue Surge: Ligand Pharmaceuticals reported a strong year with a 28% growth in royalty revenue and over 40% increase in core adjusted EPS to $5.74 per share.
Royalty Revenue Surge: Royalty revenue in Q4 2024 increased by 55% compared to Q4 2023, contributing to over $100 million in operating cash flow for the year.
Strong Financial Position: The company has over $250 million in cash and investments, no debt, and access to a $125 million revolving credit facility, indicating a strong financial position.
Blockbuster Product Sales: Key commercial products, including Verona Pharma’s Ohtuvayre and Merck’s Capvaxive, exceeded sales expectations, with both having blockbuster sales potential.
Filspari Sales Surge: Filspari, a product from Travere, saw a 40% increase in sales in Q4 2024, and is expected to significantly contribute to Ligand's revenue growth in the coming years.
Royalty Asset Diversification: Ligand's strategic focus on acquiring differentiated royalty assets has led to a diversified portfolio that generates consistent revenue.
Royalty Receipts Growth Potential: The company anticipates a compound annual growth rate of 22% or greater for royalty receipts from 2024 through 2029, indicating strong long-term growth potential.
Innovative Healthcare Investment: Ligand's investment in Castle Creek’s D-Fi, a gene modified therapy for a rare disease, showcases their commitment to innovative and impactful healthcare solutions.
Negative
Earnings Miss Report: Ligand Pharmaceuticals missed earnings expectations with a reported EPS of $1.27, falling short of the anticipated $1.37.
Net Loss Decline: GAAP net loss for 2024 was $4 million or $0.22 per share, a significant decline from the previous year's net income of $53.8 million or $3.03 per diluted share.
R&D and G&A Expense Increase: Total R&D and G&A operating expenses increased by 29% in 2024, primarily due to higher non-cash stock-based compensation expenses and costs incurred to incubate the Pelthos business.
Net Loss Decline: GAAP net loss for Q4 2024 was $31.1 million or $1.64 per share, compared to a net income of $18.2 million or $1.03 per diluted share in Q4 2023, indicating a substantial decline in profitability.
Stock Price Volatility Impact: The company experienced volatility in the price of Viking Therapeutic stock, which contributed to the decline in GAAP net income.
Operating Expenses Increase: Total operating expenses increased compared to the prior year’s quarter due to higher headcount-related costs and increased stock-based compensation.
LGND FAQs
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LGND Earning Call Sentiment
Ligand Pharmaceuticals Incorporated (NASDAQ:LGND) Q4 2024 Earnings Call Transcript
LGND.O
-8.22%Positive
Ligand's earnings call reveals strong financial performance with increased royalty revenue and adjusted EPS. Despite a slight EPS miss, guidance remains optimistic with raised revenue forecasts. The Q&A indicates strategic investments and a cautious but opportunistic approach to new sectors. The lack of immediate share buyback plans might be a minor concern, but overall, the financial health and growth outlook support a positive sentiment. Given the market cap, the stock is likely to experience a moderate positive reaction.
