Ligand Pharmaceuticals Incorporated (LGND) is expecting its third quarter 2014 adjusted earnings per share to be between 33 and 37 cents per share, above its previous guidance of 26 to 29 cents per share. The current Zacks Consensus Estimate of 21 cents is also below the company’s latest guidance.
The company expects third quarter revenues to be around $15 million, also above its prior guidance range of $13 million to $14 million. Third quarter revenues, as per the Zacks Consensus Estimate, is on par with the company’s current guidance.
Furthermore, the company reiterated its guidance for the fourth quarter and full year 2014. Ligand expects fourth quarter 2014 revenues to be within $22.5 million and $24.5 million. The Zacks Consensus Estimate of $23 million is within the company’s guidance.
As far as its 2014 outlook is concerned, the company maintained its previous guidance range. Adjusted earnings as still expected in the range of $1.50 to $1.55 per share. Earnings, as per the Zacks Consensus Estimate, of $1.06 are well below the company’s guidance range.
The company also maintained its 2014 revenue guidance in the range of $64 million to $66 million. The Zacks Consensus Estimate of $65 million is well within the company’s guidance range.
Our Take
We believe that Ligand has provided a very strong guidance for the latter part of 2014 as well as full year 2014. The company’s guidance is mostly above our expectations. We expect investor focus to stay on the company’s third quarter results due to be announced on Oct 27, 2014.
Ligand carries a Zacks Rank #5 (Strong Sell). Some better-ranked stocks in the health care sector are Actavis (ACT), Mylan, Inc. (MYL) and Mallinckrodt (MNK). All these stocks carry a Zacks Rank #1 (Strong Buy).
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