NASDAQ$LGND

Ligand Pharmaceuticals Incorporated · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported strong financial results, executed on investment strategy, and increased 2023 guidance.

Ligand Pharmaceuticals reported strong Q3 2023 financial results with total revenues of $32.9 million, and royalties of $23.9 million. The company actively executed its investment strategy, investing over $75 million in Tolerance, Ovid, Novan and Primrose transactions. Ligand is increasing its 2023 revenue guidance to be in the range of $126 million to $129 million and is raising adjusted EPS guidance to $5.25 to $5.40.

  • Total revenues for Q3 2023 were $32.9 million; revenues for the same period in 2022 excluding COVID-19 sales were $26.9 million.
  • Royalties for Q3 2023 were $23.9 million, compared to $19.3 million for the same period in 2022.
  • Core Captisol sales were $8.6 million for Q3 2023, compared to $3.6 million for the same period in 2022.
  • Adjusted net income from continuing operations for Q3 2023 was $18.0 million, or $1.02 per diluted share, compared to $10.5 million, or $0.60 per diluted share, for the same period in 2022.

Headline financials

Total Revenue

$32.9M

Previous: $66.1M-50.3%
EPS (adj)

$1.02

Previous: $1.31-22.1%
Capital Expenditures

-$3.1M

Previous: -$15.8M+80.3%
Free Cash Flow

-$13.4M

Previous: -$15.4M+13.1%
Net Income

-$10.3M

Previous: $404K-2642.8%
Operating Income

$3.08M

Previous: $636K+384.0%
Gross Profit

$957K

Previous: $636K+50.5%
Cash & Equivalents

$19.3M

Previous: $4.12M+368.3%
Total Assets

$769M

Previous: $1.05B-26.8%
R&D Expense

$5.53M

No prior period
Stock-Based Comp

$6.88M

Previous: $12.6M-45.4%

Revenue & EPS history

Ligand · Revenue · Quarterly

$32.9M

Q3 2023-50.3%vs Q3 2022
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Revenue by segment

Ligand · $23.9M total across 1 segment · Q3 2023

  • Royalties
    $23.9M+20.3%

Forward guidance

Ligand is increasing its 2023 revenue guidance to be in the range of $126 million to $129 million (previously $124 million to $126 million) and is raising adjusted EPS guidance. Sales of Captisol are now expected to range from $27 million to $28 million (previously $25 million).

Tailwinds

  • Increased revenue guidance for 2023 to $126 million - $129 million.
  • Raised adjusted EPS guidance for 2023 to $5.25 - $5.40.
  • Captisol sales are now expected to range from $27 million to $28 million.
  • Primrose Bio transaction is expected to reduce ongoing cash expenses and be immediately accretive to Ligand's adjusted EPS.
  • Acquisition of Tolerance Therapeutics is expected to be immediately accretive to Ligand's royalty revenue.

Headwinds

  • Unpredictable nature of the pandemic and related Captisol sales.
  • Potential delays or inability to meet Captisol demands of its partners.
  • Risks associated with integrating acquisitions with Ligand’s existing businesses.
  • Ligand may not be able to acquire, stabilize, outlicense or sell Novan's programs or assets.
  • Ongoing or future litigation could expose Ligand to significant liabilities.

Historical earnings impact

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

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

+0.1%

Avg return

Earnings day

+2.0%

Avg return

5 days after

-0.8%

Avg return

30 days after

52%

33 / 64 earnings

Positive

+18.7%

Q4 2013

Best reaction

-21.6%

Q3 2011

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+5.3%+5.0%
Q4 2025+2.6%+6.7%+2.1%
Q3 2025+9.3%+9.6%-2.9%
Q1 2025-3.2%+0.0%+0.4%
Q4 2024+0.6%+0.2%-6.4%
Q3 2024+3.7%+3.3%+6.8%
Q2 2024-4.9%+2.1%+5.1%
Q1 2024+10.3%+19.8%+13.1%
Q4 2023+13.3%+5.8%-1.8%
Q3 2023+2.8%+3.8%+16.3%
Q2 2023+6.7%+1.4%-4.2%
Q1 2023+5.2%+3.2%-0.2%
Q4 2022+5.9%+3.0%-2.1%
Q3 2022+12.8%+31.3%+6.0%
Q2 2022+5.7%+9.5%-3.5%
Q1 2022-2.9%-13.0%-9.1%
Q4 2021-16.3%-19.7%-8.7%
Q3 2021+7.8%+4.9%-6.9%
Q2 2021-8.1%-10.0%-7.4%
Q1 2021-9.5%-10.5%-22.3%
Q4 2020+1.7%+17.6%-18.5%
Q3 2020-0.2%+5.4%+3.4%
Q2 2020+0.6%+0.4%-11.9%
Q1 2020+3.2%+6.8%+22.1%
Q4 2019+3.3%+2.8%+16.7%
Q3 2019-7.4%-1.4%-4.9%
Q2 2019-14.8%-11.5%-14.7%
Q1 2019-3.3%-4.1%-14.6%
Q4 2018-2.7%+1.8%-10.0%
Q3 2018-2.7%-8.9%-10.7%
Q2 2018+9.8%+7.7%+13.0%
Q1 2018+7.3%+13.2%+26.4%
Q4 2017+0.0%-1.9%+3.7%
Q3 2017-4.9%-1.3%-8.4%
Q2 2017+5.7%+2.5%+9.4%
Q1 2017-2.9%+0.2%+1.2%
Q4 2016-2.8%+1.3%+1.5%
Q3 2016-2.7%+3.1%+10.8%
Q2 2016-7.4%-13.2%-20.2%
Q1 2016-1.4%
Q4 2015-4.2%
Q3 2015+5.1%
Q2 2015+2.3%
Q1 2015+4.5%
Q4 2014+2.3%
Q3 2014-3.9%
Q2 2014+7.7%
Q1 2014-2.9%
Q4 2013+18.7%
Q3 2013-10.7%
Q2 2013-1.7%
Q1 2013+1.7%
Q4 2012+7.4%
Q3 2012+10.8%
Q2 2012-8.8%
Q4 2011-8.8%
Q1 2012+1.3%
Q3 2011-21.6%
Q2 2011-6.5%
Q1 2011+0.9%
Q4 2010-0.3%
Q3 2010-2.4%
Q2 2010-3.6%
Q1 2010-9.6%

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