Liquidia (NASDAQ:LQDA) Issues Quarterly Earnings Results, Misses Estimates By $3.60 EPS

Liquidia (NASDAQ:LQDA) released its earnings results on Tuesday. The company reported ($2.64) EPS for the quarter, missing the consensus estimate of $0.96 by ($3.60), FiscalAI reports. Liquidia had a net margin of 30.74% and a return on equity of 149.65%. The business had revenue of $225.30 million during the quarter, compared to analyst estimates of $214.18 million. During the same quarter in the previous year, the company posted ($0.04) earnings per share. The business’s revenue for the quarter was up 314.9% compared to the same quarter last year.

Here are the key takeaways from Liquidia’s conference call:

• YUTREPIA continued its strong launch growth: third-quarter net product sales rose 31% sequentially to $222.7 million, and adjusted EBITDA reached $140.5 million, its fifth consecutive quarterly increase. The company said more than 70% of September prescriptions included a PAH diagnosis and October shipments were the highest since launch.
• The settlement ended the litigation overhang and, according to Liquidia, requires no switch for existing PH-ILD patients; the company reported no changes to payer formularies or coverage. Liquidia said it has no ongoing royalty or payment obligations to United Therapeutics after its final settlement payment in April 2027.
• Management said litigation-related uncertainty briefly slowed referrals at some centers: October’s daily referral rate was more than 75% of Q3’s rate. Liquidia expects referrals to recover but said it wants more data before providing 2027 revenue guidance, which it expects to address in early January.
• Liquidia reported a substantial cash balance and said it can fund its plans without raising capital: cash and equivalents were $396.1 million at quarter-end before settlement payments. The GAAP net loss of $236.3 million included a one-time $389.7 million settlement charge, with $380.7 million payable in cash through April 2027.
• The company outlined a broad development agenda, including a PH-ILD pivotal study for L606 expected to complete enrollment in 2028, with data intended to support an NDA submission in 2029; a PAH pivotal study is planned for 2027. It also expects to complete its YUTREPIA Raynaud’s dose-finding study in the first half of 2027 and plans a PH-COPD pivotal study in the second half of 2027.

Liquidia Price Performance

LQDA stock opened at $51.40 on Wednesday. The stock has a 50-day moving average price of $49.65 and a two-hundred day moving average price of $54.53. Liquidia has a 12-month low of $22.31 and a 12-month high of $93.61. The company has a current ratio of 2.31, a quick ratio of 2.12 and a debt-to-equity ratio of 0.63. The company has a market cap of $4.60 billion, a PE ratio of 37.52, a price-to-earnings-growth ratio of 0.42 and a beta of 0.40.

Liquidia News Roundup

Here are the key news stories impacting Liquidia this week:

• Positive Sentiment: YUTREPIA generated $222.7 million in third-quarter sales, helping lift total revenue to $225.3 million—up 314.9% year over year and ahead of analysts’ estimates. Adjusted EPS was reported at $0.80, above the $0.77 consensus. Liquidia Q3 Earnings and Revenues Beat Estimates
• Positive Sentiment: Reports said litigation was resolved, potentially reducing a significant source of uncertainty for the company. Shares reportedly rose following the results and legal update. Liquidia rises after third-quarter results, litigation resolved
• Positive Sentiment: BTIG raised its price target to $87 from $70 and maintained a Buy rating, reflecting a more bullish analyst outlook. BTIG Research ratings
• Negative Sentiment: Despite the adjusted-earnings beat, Liquidia reported a GAAP loss of $2.64 per share, versus expectations for a profit. A $389.7 million charge reportedly masked the strong sales quarter, so investors may focus on its impact and the company’s underlying earnings outlook. A charge masks a booming YUTREPIA quarter

Analysts Set New Price Targets

Several analysts have commented on the company. Piper Sandler set a $129.00 price target on Liquidia in a report on Friday, July 24th. Wedbush set a $58.00 price objective on shares of Liquidia in a report on Friday, October 2nd. HC Wainwright raised their target price on shares of Liquidia from $58.00 to $65.00 and gave the stock a “buy” rating in a research report on Thursday, October 15th. Lifesci Capital upgraded shares of Liquidia from a “hold” rating to an “outperform” rating and set a $59.00 target price for the company in a report on Wednesday, October 14th. Finally, Wall Street Zen downgraded shares of Liquidia from a “buy” rating to a “hold” rating in a report on Saturday, October 3rd. Six equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $74.31.

Insider Activity at Liquidia

In other news, insider Jason Adair sold 688 shares of the firm’s stock in a transaction dated Monday, October 26th. The stock was sold at an average price of $43.19, for a total value of $29,714.72. Following the transaction, the insider directly owned 177,269 shares in the company, valued at $7,656,248.11. This trade represents a 0.39% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Scott Moomaw sold 8,863 shares of Liquidia stock in a transaction dated Monday, October 12th. The shares were sold at an average price of $28.48, for a total value of $252,418.24. Following the completion of the transaction, the insider directly owned 181,487 shares in the company, valued at $5,168,749.76. This represents a 4.66% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 566,579 shares of company stock valued at $25,746,120 over the last three months. Insiders own 25.60% of the company’s stock.

About Liquidia

Liquidia Corporation is a biopharmaceutical company focused on developing and commercializing treatments for pulmonary hypertension and other serious diseases. Its work includes inhaled therapies designed to deliver medicines to the lungs. The company’s marketed product, Yutrepia (treprostinil) inhalation powder, is approved in the United States for adults with pulmonary arterial hypertension and pulmonary hypertension associated with interstitial lung disease. Liquidia also has a pipeline of investigational therapies, including other formulations of treprostinil.