Amphastar Pharmaceuticals (NASDAQ:AMPH) Posts Quarterly Earnings Results, Beats Expectations By $0.28 EPS

Amphastar Pharmaceuticals (NASDAQ:AMPH) issued its quarterly earnings data on Thursday. The company reported $1.14 earnings per share for the quarter, beating analysts’ consensus estimates of $0.86 by $0.28, FiscalAI reports. The firm had revenue of $207.61 million during the quarter, compared to analyst estimates of $197.52 million. Amphastar Pharmaceuticals had a return on equity of 14.98% and a net margin of 10.76%.

Here are the key takeaways from Amphastar Pharmaceuticals’ conference call:

• Amphastar reported record third-quarter revenue of $207.6 million, up 8% year over year, and adjusted EPS of $1.14 versus $0.93 a year earlier. BAQSIMI and Primatene MIST both posted record sales, while recently launched products also contributed.
• Mixed Sentiment: BAQSIMI sales rose 10% on higher volume, but pricing remained a headwind, including an estimated $2.2 million impact from rebates and 340B discounts. Management said efforts to reduce duplicate discounts are progressing, though it does not expect pricing to return to prior levels.
• Gross margin fell to 48% from 51%, pressured by lower prices on several products and higher manufacturing costs. IMS remediation added about $2 million to $3 million in quarterly expense, with management expecting somewhat higher costs over the next two or three quarters and continued effects on product releases.
• Management expects fourth-quarter sales to increase in the high single digits year over year, while noting a modest slowdown in IMS sales as remediation continues. Lidocaine demand is expected to remain strong, although production constraints and a growing IMS backlog may limit shipments.
• Amphastar remains on track for a potential 2027 insulin aspart biosimilar launch, but has no firm launch date and expects competition from existing products. The board also authorized an additional $50 million for share repurchases.

Amphastar Pharmaceuticals Trading Up 3.0%

NASDAQ AMPH opened at $28.49 on Friday. Amphastar Pharmaceuticals has a 12 month low of $16.65 and a 12 month high of $31.00. The business has a fifty day simple moving average of $25.35 and a 200 day simple moving average of $22.33. The firm has a market capitalization of $1.21 billion, a P/E ratio of 13.01, a PEG ratio of 5.27 and a beta of 0.93. The company has a current ratio of 2.40, a quick ratio of 1.71 and a debt-to-equity ratio of 0.79.

Wall Street Analyst Weigh In

Several equities analysts have issued reports on the stock. Weiss Ratings raised shares of Amphastar Pharmaceuticals from a “hold (c-)” rating to a “hold (c)” rating in a report on Wednesday. Piper Sandler lowered their price objective on Amphastar Pharmaceuticals from $21.00 to $20.00 and set a “neutral” rating on the stock in a research note on Friday, August 7th. Zacks Research upgraded shares of Amphastar Pharmaceuticals from a “strong sell” rating to a “hold” rating in a report on Tuesday, July 21st. Wells Fargo & Company increased their price objective on shares of Amphastar Pharmaceuticals from $20.00 to $25.00 and gave the company an “equal weight” rating in a research report on Friday. Finally, Barclays upped their price target on shares of Amphastar Pharmaceuticals from $20.00 to $23.00 and gave the company an “equal weight” rating in a report on Tuesday, August 18th. Seven research analysts have rated the stock with a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Reduce” and a consensus price target of $23.33.

Amphastar Pharmaceuticals News Summary

Here are the key news stories impacting Amphastar Pharmaceuticals this week:

• Positive Sentiment: Amphastar reported adjusted third-quarter earnings of $1.14 per share, ahead of analyst estimates of $0.78–$0.86 and up from $0.93 a year earlier. Revenue of $207.6 million also topped estimates of $197.52 million. The earnings and revenue beats are the clearest positive catalysts in the recent news. Company earnings release
• Positive Sentiment: GAAP net income was $37.8 million, or $0.87 per share; adjusted non-GAAP net income was $49.3 million, or $1.14 per share. The results suggest solid quarterly profitability alongside the sales growth. Quarterly results
• Negative Sentiment: Wells Fargo raised its price target from $20 to $25 but kept an “equal weight” rating. The new target remains about 12.2% below the cited current price, which may temper enthusiasm despite the improved target. Wells Fargo price target update

Insiders Place Their Bets

In other news, EVP Rong Zhou sold 10,000 shares of the company’s stock in a transaction dated Wednesday, September 16th. The shares were sold at an average price of $23.94, for a total value of $239,400.00. Following the sale, the executive vice president directly owned 169,203 shares of the company’s stock, valued at $4,050,719.82. This represents a 5.58% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Richard Prins sold 7,973 shares of the company’s stock in a transaction on Tuesday, August 11th. The stock was sold at an average price of $20.30, for a total transaction of $161,851.90. Following the transaction, the director owned 29,625 shares of the company’s stock, valued at approximately $601,387.50. This represents a 21.21% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 53,930 shares of company stock valued at $1,394,688 in the last ninety days. Company insiders own 29.60% of the company’s stock.

Amphastar Pharmaceuticals Company Profile

Amphastar Pharmaceuticals, Inc is a biopharmaceutical company that develops, manufactures and markets injectable, inhalation and intranasal products. The company focuses on technically challenging medicines, including complex generics, proprietary products and products based on its drug-delivery technologies.

Its product portfolio includes Primatene MIST, an over-the-counter epinephrine inhaler; Baqsimi, a nasal glucagon product used to treat severe hypoglycemia; and injectable medicines such as glucagon, naloxone, enoxaparin and hyaluronidase.