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H.C. Wainwright has adjusted its outlook on Exelixis (NASDAQ: NASDAQ:EXEL), increasing the 12-month price target to $29 from the previous $28, while keeping a Buy rating on the stock. The firm's decision follows Exelixis's reported second-quarter financial performance, which surpassed earlier projections.
Exelixis announced a diluted net income of $0.77 per share for the second quarter of 2024, significantly higher than the anticipated $0.34 per share. This increase is largely due to a $150 million milestone payment received from Ipsen.
The company's revenue for the quarter was $637.2 million, with cabozantinib, its leading product, contributing $437.6 million to the total. These figures compare favorably to the pre-estimated revenues of $470.1 million and cabozantinib sales of $425.1 million.
The company's research and development (R&D) expenses for the quarter were reported at $211.1 million, with selling, general, and administrative (SG&A) expenses at $132.0 million. These figures stood against the analyst's estimates of $234.6 million for R&D and $112.6 million for SG&A expenses.
Looking ahead, H.C. Wainwright has revised its full-year 2024 net earnings projection for Exelixis to $1.54 per share, up from the previous estimate of $1.14 per share. As of the end of the second quarter of 2024, Exelixis's financial position included approximately $1.43 billion in cash, cash equivalents, and marketable securities.
Exelixis reported a strong financial performance for the second quarter of 2024, highlighted by a 16% quarter-over-quarter and 7% year-over-year increase in net product revenues for CABOMETYX.
The company's global cabozantinib franchise net product revenues reached an impressive $618 million, including a $150 million commercial milestone from Ipsen. Furthermore, the company's supplementary NDA for cabozantinib in the treatment of neuroendocrine tumors (NET) has been accepted by the FDA, with a PDUFA date set for April 3, 2025.
Despite the discontinuation of the XB002 program, Exelixis remains optimistic about its pipeline, including the potential expansion of its cabozantinib franchise with new indications and compounds.
The company is also actively assessing the development of XL309 and plans to file up to three INDs this year. In addition, Exelixis has shown interest in exploring business development opportunities, including potential acquisitions of late-stage assets.
InvestingPro Insights
Following H.C. Wainwright's optimistic revision of Exelixis's price target, InvestingPro data and insights further illuminate the company's financial landscape. Exelixis's market capitalization stands at $7.56 billion, with a P/E ratio of 22.81, which adjusts to a more favorable 20.07 when considering the last twelve months as of Q2 2024. The company's PEG ratio during this period was an attractive 0.17, suggesting potential for growth when compared to earnings projections.
InvestingPro Tips highlight that Exelixis has been actively engaged in share buybacks, a move often interpreted as management's confidence in the company's value. Additionally, the stock is currently trading near its 52-week high, with a price that is 97.9% of this peak, reflecting robust market sentiment. Notably, the company's strong returns over the past week, month, and three months have been 9.5%, 20.05%, and 22.83%, respectively, underscoring its recent momentum in the market.
For readers interested in a deeper dive into Exelixis's financials and market performance, InvestingPro offers a comprehensive suite of additional tips—15 in total for Exelixis—which can be explored for more nuanced investment decisions. The platform also suggests a fair value of $31.98 for Exelixis, higher than the analyst target, indicating a potential undervaluation at the current price.
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