NASDAQ$IRWD

Ironwood Pharmaceuticals Inc. · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Reported strong performance driven by LINZESS, exceeding 1 million total prescriptions in a quarter.

Ironwood Pharmaceuticals reported strong Q3 2022 results, with LINZESS exceeding 1 million total prescriptions in a quarter and a 10% year-over-year increase in EUTRx prescription demand. GAAP net income was $50 million, and adjusted EBITDA was $69 million, with $574 million in cash and cash equivalents at the end of the quarter. The company maintains its full-year 2022 financial guidance.

  • LINZESS EUTRx prescription demand growth increased 10% year-over-year.
  • LINZESS exceeded 1 million total prescriptions in a quarter.
  • GAAP net income of $50 million and adjusted EBITDA of $69 million were reported.
  • Ended Q3 2022 with $574 million in cash and cash equivalents.

Headline financials

Total Revenue

$109M

Previous: $104M+4.7%
EPS (adj)

$0.28

Previous: $0.33-15.2%
Capital Expenditures

-$163K

Previous: -$137K-19.0%
Free Cash Flow

$50.2M

Previous: $55.7M-10.0%
Net Income

$50.3M

Previous: $55.8M-9.9%
Operating Income

$68.5M

Previous: $65.2M+5.1%
Gross Profit

$108M

Previous: $102M+6.7%
Cash & Equivalents

$574M

Previous: $574M-0.0%
Total Assets

$1.04B

Previous: $1.08B-3.6%
Stock-Based Comp

$7.07M

Previous: $6.21M+13.9%

Revenue & EPS history

Ironwood Pharmaceuticals · Revenue · Quarterly

$109M

Q3 2022+4.7%vs Q3 2021
Beat estimate in 7 of 14 quarters(50%)
ActualEstimate

Revenue by segment

Ironwood Pharmaceuticals · $71M total across 1 segment · Q1 2020

  • LINZESS Collaboration
    $71M

Forward guidance

Ironwood Pharmaceuticals maintains its full year 2022 financial guidance.

Tailwinds

  • U.S. LINZESS net sales growth of low single digits %
  • Total Ironwood revenue of $420 to $430 million
  • Adjusted EBITDA of >$250 million
  • Continued focused investments
  • Commitment to reaching new patients to drive prescription demand growth moving forward

Headwinds

  • Unable to predict with reasonable certainty the non-GAAP adjustments used to calculate adjusted EBITDA.
  • Adjustments are uncertain
  • Depend on various factors
  • Could have a material impact on GAAP net income for the guidance period.
  • May not incur material expenses related to business development activities in 2022.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2022

Historical avgQ3 2022

-1.0%

Avg return

Earnings day

-0.3%

Avg return

5 days after

-1.2%

Avg return

30 days after

44%

28 / 64 earnings

Positive

+32.8%

Q3 2025

Best reaction

-29.5%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-13.9%-15.5%-31.5%
Q4 2025-11.4%-5.8%-19.3%
Q3 2025+32.8%+63.5%+92.2%
Q1 2025-4.4%+0.0%+5.1%
Q4 2024-5.3%-12.9%-17.5%
Q3 2024-1.6%-12.9%-31.9%
Q2 2024-29.5%-25.3%-25.0%
Q1 2024-13.8%-18.3%-21.8%
Q4 2023-5.6%-4.0%-41.6%
Q3 2023+5.5%+5.6%+13.5%
Q2 2023-15.3%-11.3%-24.2%
Q1 2023+1.5%-2.4%+4.9%
Q4 2022+5.8%+3.9%-7.4%
Q3 2022+3.7%+6.8%+11.9%
Q2 2022+5.9%+5.6%-2.9%
Q1 2022-3.0%-8.4%-9.0%
Q4 2021-2.5%-1.2%+13.5%
Q3 2021+0.4%-1.2%-14.6%
Q2 2021+3.2%+4.3%-1.5%
Q1 2021+1.3%+1.5%+9.3%
Q4 2020-7.0%-6.6%+12.3%
Q3 2020+4.0%+12.4%+16.8%
Q2 2020+5.8%+3.0%+1.5%
Q1 2020-3.2%+2.5%-5.3%
Q4 2019-3.2%-2.9%-18.3%
Q3 2019+10.0%+15.9%+27.5%
Q2 2019+2.6%-0.8%-10.0%
Q1 2019-9.9%-12.3%-7.2%
Q4 2018+5.4%+15.1%+3.1%
Q3 2018-15.6%-15.9%-10.3%
Q2 2018-1.1%-1.9%-1.1%
Q1 2018+4.4%+2.6%+2.5%
Q4 2017+6.0%+2.4%+6.0%
Q3 2017+6.8%+1.8%+16.6%
Q2 2017-12.8%-15.5%-9.0%
Q1 2017+5.2%+12.9%+10.5%
Q4 2016-1.6%-4.2%+0.1%
Q3 2016+7.2%+15.2%+22.5%
Q2 2016-6.0%-7.7%-6.9%
Q1 2016+9.3%
Q4 2015+3.4%
Q3 2015-1.2%
Q2 2015+2.4%
Q1 2015-0.1%
Q4 2014-3.1%
Q3 2014-0.9%
Q2 2014-6.2%
Q1 2014+8.4%
Q4 2013+14.1%
Q3 2013-4.0%
Q2 2013+4.2%
Q1 2013-8.9%
Q4 2012-7.7%
Q3 2012+0.0%
Q2 2012-3.8%
Q1 2011-0.5%
Q1 2012-3.5%
Q4 2011-3.4%
Q2 2011-3.4%
Q3 2011-13.6%
Q2 2010+3.3%
Q4 2010+0.1%
Q3 2010+1.4%
Q1 2010-3.7%

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