Amarin (NASDAQ:AMRN) Announces Quarterly Earnings Results, Beats Estimates By $0.11 EPS

Key Points

• Amarin beat earnings expectations: The company reported quarterly EPS of $0.01, $0.11 above estimates, though revenue of $39.55 million missed the $43.76 million consensus.
• Profitability and international growth improved: Amarin posted its first profitable quarter in two years, generated $9 million in operating cash flow, held $324 million in cash and investments with no debt, and saw strong growth in international VAZKEPA demand.
• U.S. pricing pressure remains a challenge: Revenue declined from $49.7 million a year earlier due to lower net selling prices and generic competition, with management expecting pricing pressure to continue through 2027; analysts’ consensus rating remains “Hold” with a $13 target.

Amarin (NASDAQ:AMRN - Get Free Report) issued its quarterly earnings results on Wednesday. The biopharmaceutical company reported $0.01 earnings per share for the quarter, beating the consensus estimate of ($0.10) by $0.11, Zacks reports. The company had revenue of $39.55 million during the quarter, compared to analyst estimates of $43.76 million.

Here are the key takeaways from Amarin's conference call:

• Positive Sentiment: Amarin reported its first profitable quarter in two years, with Q3 net income of $245,000 versus a $7.7 million loss a year earlier, $9 million in positive operating cash flow, and $324 million in cash and investments with no debt.
• Positive Sentiment: International momentum remained strong: European VAZKEPA in-market demand rose an estimated 68% year over year, total global partner demand increased 55%, and launches in Poland, Singapore, and South Korea are expanding the commercial opportunity.
• Negative Sentiment: Q3 revenue fell to $39.6 million from $49.7 million, primarily because U.S. pricing pressure and generic competition reduced net selling prices despite stable branded prescription volume; management expects pricing pressure to continue into 2027.
• Positive Sentiment: Amarin maintained a 47% share of the U.S. IPE market, reduced operating expenses by 44% year over year, improved gross margins sequentially through renegotiated supply contracts, and expects positive operating cash flow for the full year.
• Neutral Sentiment: The investigator-led EMT-2 colorectal cancer trial did not meet its primary progression-free-survival endpoint but showed a statistically significant 32% reduction in the hazard of death on overall survival; Amarin is evaluating the data and potential commercial and development paths, including possible partnerships.

Amarin Stock Performance

Shares of AMRN traded up $0.81 during mid-day trading on Wednesday, reaching $12.76. The company had a trading volume of 60,058 shares, compared to its average volume of 74,954. The company has a market capitalization of $269.42 million, a price-to-earnings ratio of -12.88 and a beta of 0.76. Amarin has a 52 week low of $11.25 and a 52 week high of $18.50. The firm has a 50-day moving average price of $13.07 and a 200 day moving average price of $14.37.

Analyst Ratings Changes

Several equities research analysts recently commented on the company. JPMorgan Chase & Co. initiated coverage on Amarin in a research note on Friday, August 21st. They set an "underweight" rating and a $13.00 target price for the company. Zacks Research upgraded shares of Amarin from a "hold" rating to a "strong-buy" rating in a report on Monday, October 5th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Amarin in a report on Thursday, October 15th. Finally, Wall Street Zen cut Amarin from a "buy" rating to a "hold" rating in a research report on Saturday, July 25th. One investment analyst has rated the stock with a Strong Buy rating and two have given a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average price target of $13.00.

Amarin Company Profile

Amarin Corporation plc is a biopharmaceutical company focused on developing and commercializing therapies intended to reduce cardiovascular risk. Its principal product is VASCEPA (icosapent ethyl), a prescription omega-3 fatty-acid medicine derived from highly purified eicosapentaenoic acid.

VASCEPA was initially approved in the United States to help lower triglyceride levels in certain patients and later received expanded approval to reduce the risk of cardiovascular events in eligible adults with elevated cardiovascular risk.

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