VIVUS, Inc. (VVUS) Earnings: An Early Look

Page 1 of 2

Earnings season is now starting to wind down, with most companies already having reported their quarterly results. But there are still some companies left to report, and VIVUS, Inc. (NASDAQ:VVUS) is about to release its quarterly earnings report. The key to making smart investment decisions with stocks releasing their quarterly reports is to anticipate how they’ll do before they announce results, leaving you fully prepared to respond quickly to whatever inevitable surprises arise. That way, you’ll be less likely to make an uninformed kneejerk reaction to news that turns out to be exactly the wrong move.

VIVUS, Inc. (NASDAQ:VVUS)VIVUS was fortunate enough to be the first company to bring a new anti-obesity drug to market, but Qsymia hasn’t been everything that investors had hoped it would be. Let’s take an early look at what’s been happening with VIVUS over the past quarter and what we’re likely to see in its quarterly report on Monday.

Stats on VIVUS

Analyst EPS Estimate ($0.44)
Year-Ago EPS ($0.14)
Revenue Estimate $3.34 million
Change From Year-Ago Revenue NM
Earnings Beats in Past 4 Quarters
0

Sources: Yahoo! Finance, S&P Capital IQ. NM = not meaningful; VIVUS had no revenue in the year-ago period.

Will VIVUS finally pay off for investors?
Analysts aren’t too optimistic about VIVUS coming into its report, as they’ve cut nearly a dime off earnings-per-share estimates for the quarter over the past few months, and for full-year 2013, current consensus has fallen by more than $0.25 per share over the same time frame. But investors haven’t been deterred by those concerns, as the stock is up more than 25% since mid-November.

VIVUS wasn’t the first company to get its obesity drug approved, as Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) managed to get its Belviq drug past the FDA gates first. But Arena hasn’t been able to release Belviq pending DEA classification, VIVUS got a head start on sales. After a slow start, sales have picked up somewhat, with the company saying that sales in the late November to late December period rose 68% from the prior four-week period.

More recently, though, questions have arisen about whether any blockbuster anti-obesity drug will emerge from the fray. Safety issues have again come up, with the regulatory agency responsible for approving drugs in the European Union rejecting VIVUS’s appeal pending more clinical data on potential risks of cardiovascular problems. Moreover, even if safety concerns with anti-obesity drugs get resolved successfully, most medications can’t solve obesity without accompanying changes in patient behavior.

Moreover, cost has been a concern, as 30% of patients have given up their prescriptions. Aetna Inc. (NYSE:AET) changed its policies to call Qsymia and Belviq “medically necessary” and therefore allowed them to qualify for drug benefits in many cases, and pharmacy benefits manager Express Scripts Holding Company (NASDAQ:ESRX) has added Qsymia to its national formulary, opening the door to copayments of $50 to $60 for many patients. Other insurance providers may conclude that encouraging obesity treatment leads to lower overall health costs in the long run and therefore make the same change.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!