NASDAQ$UTHR

United Therapeutics Corp · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Reported a decrease in first quarter net revenue and an increase in diluted earnings per share.

United Therapeutics Corporation announced its financial results for the quarter ended March 31, 2020. First quarter net revenue decreased 2% to $356.3 million year-over-year. First quarter diluted earnings per share (EPS) was $3.12 compared to an $11.32 per share loss in the first quarter of 2019. Non-GAAP diluted EPS of $3.61 was up 1% from the first quarter of 2019.

  • First quarter Orenitram® net revenue growth of 18% year-over-year
  • Major milestones such as the INCREASE filing and Remunity™ Pump launch remain on track despite the COVID-19 pandemic
  • Diluted earnings per share (EPS) was $3.12 compared to an $11.32 per share loss in the first quarter of 2019
  • United Therapeutics is engaged in the fight against COVID-19

Headline financials

Total Revenue

$356M

Previous: $363M-1.7%
EPS (adj)

$3.61

Previous: $3.58+0.8%
Capital Expenditures

-$13M

Previous: -$25.1M+48.2%
Free Cash Flow

$125M

Previous: -$520M+124.0%
Net Income

$138M

Previous: -$495M+127.8%
Operating Income

$167M

Previous: -$656M+125.4%
Gross Profit

$333M

Previous: $334M-0.2%
Cash & Equivalents

$875M

Previous: $791M+10.7%
Total Assets

$4.03B

Previous: $3.73B+8.0%
Stock-Based Comp

$30.8M

Previous: $29.2M+5.5%

Revenue & EPS history

United Therapeutics · Revenue · Quarterly

$356M

Q1 2020-1.7%vs Q1 2019
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

United Therapeutics · $356M total across 5 segments · Q1 2020

  • Remodulin
    $123M-7.6%
  • Nebulized Tyvaso
    $86.7M-1.0%
  • Orenitram
    $69.8M+17.9%
  • Adcirca
    $47.3M-13.7%
  • Unituxin
    $29.2M+6.2%

Forward guidance

Due to the rapidly evolving situation with COVID-19, United Therapeutics is no longer able to predict whether their full-year 2020 net revenues will grow compared to 2019.

Tailwinds

  • Financial position is strong with enough cash, cash equivalents, and marketable securities on hand to fund operations for at least two years.
  • Have an ample supply of products with sufficient inventory of finished treprostinil-based products to supply the market for two years at current levels of demand.
  • Manufacturing of treprostinil-based products continues mostly as usual, and do not currently anticipate any supply shortages.
  • Distribution of drug product to patients continues without interruption.
  • Planned regulatory activities and interactions with the FDA continue.

Headwinds

  • It is too early to predict what impact this pandemic, and the associated economic downturn, will have on our business.
  • There is considerable uncertainty and lack of visibility regarding our near-term revenue growth prospects and product development plans due to the rapidly evolving situation.
  • Observed a decline in new prescriptions from our treprostinil-based products during the month of April 2020 that we believe is primarily due to the inability of patients to visit their physicians’ offices.
  • Commercial efforts continue but could be disrupted as a result of the COVID-19 pandemic.
  • Most of our ongoing clinical studies have paused enrollment during the pandemic.

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 Q1 2020

Historical avgQ1 2020

+0.6%

Avg return

Earnings day

+0.2%

Avg return

5 days after

+1.1%

Avg return

30 days after

57%

39 / 68 earnings

Positive

+16.2%

Q3 2022

Best reaction

-13.0%

Q4 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+4.3%-0.4%-4.0%
Q4 2025+13.1%+8.5%+10.4%
Q3 2025+9.7%+5.6%+17.0%
Q1 2025+0.8%-0.7%+6.0%
Q4 2024-10.8%-13.3%-14.1%
Q3 2024+6.0%+6.8%+5.0%
Q2 2024-2.9%-3.5%+7.7%
Q1 2024+10.2%+11.2%+17.4%
Q4 2023+1.6%+4.4%+11.1%
Q3 2023+2.4%+2.4%+8.0%
Q2 2023-3.4%-1.0%-5.0%
Q1 2023-5.7%-8.0%-5.1%
Q4 2022-2.7%-3.3%-13.8%
Q3 2022+16.2%+16.8%+22.0%
Q2 2022-1.5%-2.7%-0.8%
Q1 2022+4.1%-0.6%+27.2%
Q4 2021-13.0%-14.0%-9.5%
Q3 2021+4.8%+5.1%-3.2%
Q2 2021+13.7%+15.0%+16.7%
Q1 2021-1.7%-2.8%-9.9%
Q4 2020-2.1%-0.6%-0.7%
Q3 2020+5.6%+8.6%+9.8%
Q2 2020+0.3%+2.9%-6.3%
Q1 2020-0.2%+2.0%+7.5%
Q4 2019-10.7%-8.0%-19.1%
Q3 2019+3.3%+3.6%+6.1%
Q2 2019+4.5%-0.5%+3.8%
Q1 2019-1.3%-1.9%-18.1%
Q4 2018+3.6%-1.5%-3.8%
Q3 2018-6.2%-6.2%-3.7%
Q2 2018+0.3%+0.7%+0.1%
Q1 2018-8.3%-8.3%-4.2%
Q4 2017-12.9%-14.1%-20.4%
Q3 2017+0.2%+0.8%+5.1%
Q2 2017-2.3%-2.6%-2.2%
Q1 2017-1.0%+1.0%-2.2%
Q4 2016-12.2%-9.2%-16.6%
Q3 2016+4.5%+6.0%+19.0%
Q2 2016+6.9%+11.2%+7.6%
Q1 2016-10.6%
Q4 2015-4.2%
Q3 2015+8.8%
Q2 2015+0.8%
Q1 2015-4.4%
Q4 2014+2.3%
Q3 2014-1.9%
Q2 2014+2.7%
Q1 2014+12.4%
Q4 2013-4.1%
Q3 2013+3.8%
Q2 2013+2.7%
Q1 2013-1.6%
Q4 2012+2.7%
Q3 2012+2.9%
Q2 2012+8.3%
Q1 2012+0.8%
Q4 2011-0.9%
Q3 2011+8.0%
Q2 2011+5.0%
Q1 2010-5.3%
Q1 2011+0.8%
Q4 2008+1.8%
Q4 2010+1.8%
Q3 2009+8.0%
Q3 2010+8.0%
Q4 2009-8.2%
Q2 2010-8.2%
Q2 2009-8.2%

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