It has been about a month since the last earnings report for Ionis Pharmaceuticals (IONS). Shares have added about 3.4% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Ionis Pharmaceuticals due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Q1 Earnings & Sales Beat Estimates
Ionis reported first-quarter 2026 adjusted loss per share of 30 cents, narrower than the Zacks Consensus Estimate of a loss of 85 cents. In the year-ago period, the company had incurred an adjusted loss of 75 cents.
The adjusted earnings exclude compensation expenses related to equity awards. Including this special item, loss was pinned at 56 cents per share compared with a loss of 93 cents in the year-ago period.
Quarterly revenues totaled $246 million, which beat the Zacks Consensus Estimate of $190.41 million. The reported figure rose 87% year over year.
Quarter in Detail
Commercial revenues, which include sales of wholly-owned drugs and royalties on partnered drugs, rose 42% year over year to $108 million during the quarter. This growth was primarily driven by higher product sales from Tryngolza and Dawnzera. However, the metric missed the Zacks Consensus Estimate of $124 million.
Tryngolza product sales were $27 million compared with $6 million in the year-ago period. This upside was driven by strong demand in FCS indication despite an anticipated decline in net price.
Dawnzera generated $16 million during the quarter compared with $7 million in the previous quarter. The upside was driven by an encouraging early launch trajectory for the drug.
Spinraza royalties totaled $44 million, down 8% year over year.
Wainua royalty revenues amounted to $11 million, up 22% year over year. Commercial launches in the EU and China are currently underway.
R&D revenues, which include upfront payments, milestone payments and license fees from partnered medicines, surged 146% year over year to $138 million. This figure beat the Zacks Consensus Estimate of $67 million.
Collaborative agreement revenues totaled $120 million compared with $46 million in the year-ago quarter, benefiting from approximately $95 million of milestone payments from multiple partnerships.
Joint development revenues for Wainua from partner AstraZeneca amounted to $18 million compared with $10 million in the year-ago quarter.
Cost Discussion
Adjusted operating costs rose 29% year over year to $321 million in the quarter. While SG&A costs increased nearly 99% to support commercialization efforts for Wainua, Tryngolza and Dawnzera, R&D costs rose 2% in the quarter.
2026 Guidance
The company raised its guidance for the full year. It now expects total revenues to be between $875 million and $900 million, up from the prior guidance of $800-$825 million.
The company introduced product-level expectations for the year, projecting Tryngolza sales of $100-$110 million and $110-$120 million from Dawnzera sales.
The adjusted operating loss is now expected to be between $425 million and $475 million, down from the previous guidance of $500-$550 million.
Ionis continues to project year-end cash and investments of greater than $1.6 billion while remaining on track for cash-flow breakeven in 2028.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in estimates revision.
VGM Scores
At this time, Ionis Pharmaceuticals has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. However, the stock has a score of F on the value side, putting it in the lowest quintile for value investors.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Ionis Pharmaceuticals has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Ionis Pharmaceuticals, Inc. (IONS): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).