NASDAQ$IRWD

Ironwood Pharmaceuticals Inc. · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Reported strong fourth quarter and full year results, exceeding full year guidance, and provided full year 2020 guidance.

Ironwood Pharmaceuticals reported strong fourth quarter and full year 2019 results, exceeding full year 2019 guidance. The company's 2019 revenue was $428 million, driven primarily by U.S. LINZESS collaboration revenue. GAAP net income from continuing operations was $59 million and adjusted EBITDA from continuing operations was $148 million for the full year 2019. 2020 total revenue and adjusted EBITDA guidance incorporates previously amended agreements with Astellas and AstraZeneca. Data readouts from MD-7246 Phase II trial and IW-3718 Phase III trials are expected in 2020.

  • Became a GI-focused healthcare company dedicated to advancing the treatment of GI diseases and redefining the standard of care for millions of patients
  • Executing on strategy to drive LINZESS growth, advance late-stage GI portfolio, and deliver sustainable profits.
  • Made substantial progress in 2019 across each of these priorities and expect 2020 to be another pivotal year.
  • Settled all outstanding LINZESS patent litigation

Headline financials

Total Revenue

$126M

Previous: $131M-3.4%
EPS (adj)

$0.30

Previous: -$0.02+1600.0%
U.S. LINZESS Net Sales

$170M

Previous: $129M+31.9%
Capital Expenditures

$2.67M

Previous: $3.3M-19.2%
Free Cash Flow

$24.9M

Previous: $5.97M+317.1%
Net Income

-$1.6M

Previous: -$15.5M+89.7%
Operating Income

$1.18M

Previous: $6M-80.4%
Gross Profit

$115M

Previous: $109M+5.5%
Cash & Equivalents

$177M

Previous: $173M+2.2%
Total Assets

$403M

Previous: $332M+21.3%
Stock-Based Comp

$5.49M

Previous: $11.2M-51.1%

Revenue & EPS history

Ironwood Pharmaceuticals · Revenue · Quarterly

$126M

Q4 2019-3.4%vs Q4 2018
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

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

  • LINZESS Collaboration
    $71M

Forward guidance

In 2020, Ironwood expects revenue between $370 million and $390 million and adjusted EBITDA between $165 million and $185 million.

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 Q4 2019

Historical avgQ4 2019

-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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