AMRN's Q4 Earnings Lag Estimates, Stock Down on Ratio Change Plan

Amarin Corporation plc AMRN reported a loss of 12 cents per share for the fourth quarter of 2024, which was wider than the Zacks Consensus Estimate of a loss of 6 cents. The company had reported a loss of 1 cent per share in the year-ago quarter.See the Zacks Earnings Calendar to stay ahead of market-making news.Excluding non-cash stock-based compensation expense and restructuring charges, the company reported an adjusted loss of 2 cents per share in the fourth quarter of 2024 compared with break-even earnings reported in the year-ago quarter.Total revenues in the fourth quarter were $62.3 million, comprehensively beating the Zacks Consensus Estimate of $35 million. However, revenues declined 17% from the year-ago quarter’s levels, owing to lower product revenues.In the past year, AMRN stock has plunged 51.3% compared with the industry’s decline of 8.2%.Image Source: Zacks Investment ResearchMore on AMRN's Q4 EarningsNet product revenues from Vascepa, the company’s sole marketed drug, in the fourth quarter, were $60.1 million, down 15% year over year.U.S. product revenues from Vascepa totaled $44.2 million, declining almost 32% from the year-ago quarter’s level as rising generic competition continued to hurt sales volumes and price. The drug’s U.S. sales beat our model estimate of $20.5 million.Product revenues from Vazkepa (Vascepa’s brand name in Europe) in the European market totaled $4 million compared with $1.5 million reported in the year-ago quarter. Revenues in rest of the world were $11.9 million compared with $4.2 million reported in the year-ago quarter.Licensing and royalty revenues came in at $2.2 million in the fourth quarter compared with $4.2 million reported in the year-ago period.Selling, general and administrative expenses totaled $37 million, down almost 15.7% year over year. This downside was due to cost optimization efforts in Amarin’s business.Research and development expenses totaled $6 million, up around 3.4% year over year.Amarin ended the fourth quarter with cash and investments of $294.2 million compared with $305.7 million reported in the quarter that ended September 2024. The company believes that its current cash is enough to fund the ongoing operations and support continued operations in the foreseeable future.AMRN's Full-Year ResultFor 2024, Amarin generated total revenues of $228.6 million, reflecting a decrease of 25.5% year over year.For the same period, the company reported a loss of 20 cents per share, wider than the loss of 15 cents reported in the year-ago period.AMRN's Plan to Initiate Ratio ChangeIn a separate press release, Amarin announced that it begin  a ratio change on its American Depositary Shares (“ADS”) from one ADS representing one ordinary share to the new ratio of one ADS representing 20 ordinary shares. The effective date of the ratio change is anticipated to be on or about April 11, 2025.This can be attributed as the reason for the stock to decline 14.9% on March 12, following the announcement of the news.The idea behind the ratio change is to comply with Nasdaq’s requirement of a minimum bid price per share of $1 and maintain the stock’s listing on the Nasdaq Capital Market.Amarin Corporation PLC Price, Consensus and EPS Surprise Amarin Corporation PLC price-consensus-eps-surprise-chart | Amarin Corporation PLC QuoteAMRN's Zacks Rank & Stocks to ConsiderAmarin currently carries a Zacks Rank #4 (Sell).Some better-ranked stocks in the biotech sector are Dynavax Technologies Corporation DVAX, Arvinas Inc ARVN and BioMarin Pharmaceutical Inc. BMRN, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.In the past 60 days, estimates for Dynavax’s earnings per share have increased from 29 cents to 33 cents for 2025. During the same time, earnings per share have increased from 48 cents to 57 cents for 2026. In the past year, shares of DVAX have rallied 14.3%.DVAX’s earnings beat estimates in three of the trailing four quarters while missing the same on the remaining occasion, the average surprise being 9.58%.In the past 60 days, estimates for Arvinas’ loss per share have narrowed from $4.56 to $3.80 for 2025. During the same time, loss per share has narrowed from $4.26 to $3.76 for 2026. In the past year, shares of ARVN have plunged 79.8%.ARVN’s earnings beat estimates in each of the trailing four quarters, the average surprise being 32.56%.In the past 60 days, estimates for BioMarin’s earnings per share have increased from $4.01 to $4.25 for 2025. During the same time, earnings per share have increased from $5.17 to $5.29 for 2026. In the past year, shares of BMRN have declined 16.4%.BMRN’s earnings beat estimates in each of the trailing four quarters, the average surprise being 32.36%.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>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 Dynavax Technologies Corporation (DVAX): Free Stock Analysis Report BioMarin Pharmaceutical Inc. (BMRN): Free Stock Analysis Report Amarin Corporation PLC (AMRN): Free Stock Analysis Report Arvinas, Inc. (ARVN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks