Amphastar Pharmaceuticals (NASDAQ:AMPH) Releases Earnings Results, Beats Expectations By $0.28 EPS

Key Points

• Amphastar reported $1.14 per share, beating the $0.86 consensus estimate, and revenue of $207.6 million, above estimates of $197.5 million. Revenue rose 8% year over year, with record sales from BAQSIMI and Primatene MIST.
• Profitability faced pressure: gross margin declined to 48% from 51% amid lower product pricing, higher manufacturing costs, and IMS remediation expenses. BAQSIMI sales grew, but rebates and 340B discounts continued to weigh on pricing.
• Management expects fourth-quarter sales to rise by a high-single-digit percentage year over year, while noting ongoing IMS remediation and potential production constraints. The board also authorized an additional $50 million in share repurchases.

Amphastar Pharmaceuticals (NASDAQ:AMPH - Get Free Report) issued its quarterly earnings results on Thursday. The company reported $1.14 EPS for the quarter, beating analysts' consensus estimates of $0.86 by $0.28, FiscalAI reports. The company had revenue of $207.61 million for the quarter, compared to analyst estimates of $197.52 million. Amphastar Pharmaceuticals had a return on equity of 14.98% and a net margin of 10.76%.

Here are the key takeaways from Amphastar Pharmaceuticals' conference call:

• Amphastar reported record third-quarter revenue of $207.6 million, up 8% year over year, and adjusted EPS of $1.14 versus $0.93 a year earlier. BAQSIMI and Primatene MIST both posted record sales, while recently launched products also contributed.
• Mixed Sentiment: BAQSIMI sales rose 10% on higher volume, but pricing remained a headwind, including an estimated $2.2 million impact from rebates and 340B discounts. Management said efforts to reduce duplicate discounts are progressing, though it does not expect pricing to return to prior levels.
• Gross margin fell to 48% from 51%, pressured by lower prices on several products and higher manufacturing costs. IMS remediation added about $2 million to $3 million in quarterly expense, with management expecting somewhat higher costs over the next two or three quarters and continued effects on product releases.
• Management expects fourth-quarter sales to increase in the high single digits year over year, while noting a modest slowdown in IMS sales as remediation continues. Lidocaine demand is expected to remain strong, although production constraints and a growing IMS backlog may limit shipments.
• Amphastar remains on track for a potential 2027 insulin aspart biosimilar launch, but has no firm launch date and expects competition from existing products. The board also authorized an additional $50 million for share repurchases.

Amphastar Pharmaceuticals Stock Down 1.3%

Shares of NASDAQ:AMPH traded down $0.36 during midday trading on Thursday, reaching $27.66. The company had a trading volume of 606,450 shares, compared to its average volume of 407,211. The company has a quick ratio of 1.71, a current ratio of 2.40 and a debt-to-equity ratio of 0.79. The business's 50 day moving average price is $25.22 and its 200 day moving average price is $22.31. The stock has a market cap of $1.18 billion, a PE ratio of 11.21, a P/E/G ratio of 5.46 and a beta of 0.93. Amphastar Pharmaceuticals has a 1-year low of $16.65 and a 1-year high of $29.52.

Analysts Set New Price Targets

AMPH has been the subject of a number of recent research reports. Wall Street Zen downgraded Amphastar Pharmaceuticals from a "strong-buy" rating to a "buy" rating in a research report on Sunday. Piper Sandler decreased their price target on shares of Amphastar Pharmaceuticals from $21.00 to $20.00 and set a "neutral" rating for the company in a research note on Friday, August 7th. Weiss Ratings upgraded shares of Amphastar Pharmaceuticals from a "sell (d+)" rating to a "hold (c-)" rating in a report on Friday, October 16th. Zacks Research raised shares of Amphastar Pharmaceuticals from a "strong sell" rating to a "hold" rating in a research report on Tuesday, July 21st. Finally, Wells Fargo & Company boosted their price objective on shares of Amphastar Pharmaceuticals from $19.00 to $20.00 and gave the stock an "equal weight" rating in a research report on Friday, August 7th. Seven investment analysts have rated the stock with a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Reduce" and an average target price of $22.50.

Insider Buying and Selling

In related news, CFO William Peters sold 4,139 shares of the stock in a transaction that occurred on Monday, September 21st. The stock was sold at an average price of $25.00, for a total transaction of $103,475.00. Following the completion of the transaction, the chief financial officer directly owned 168,707 shares of the company's stock, valued at approximately $4,217,675. This represents a 2.39% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Rong Zhou sold 10,000 shares of the firm's stock in a transaction that occurred on Wednesday, September 16th. The shares were sold at an average price of $23.94, for a total value of $239,400.00. Following the completion of the transaction, the executive vice president owned 169,203 shares of the company's stock, valued at approximately $4,050,719.82. This represents a 5.58% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 33,479 shares of company stock worth $763,922. Corporate insiders own 29.60% of the company's stock.

Amphastar Pharmaceuticals Company Profile

Amphastar Pharmaceuticals, Inc is a biopharmaceutical company that develops, manufactures and markets injectable, inhalation and intranasal products. The company focuses on technically challenging medicines, including complex generics, proprietary products and products based on its drug-delivery technologies.

Its product portfolio includes Primatene MIST, an over-the-counter epinephrine inhaler; Baqsimi, a nasal glucagon product used to treat severe hypoglycemia; and injectable medicines such as glucagon, naloxone, enoxaparin and hyaluronidase.

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