Why Is Ironwood (IRWD) Up 24.9% Since Last Earnings Report?

Core Viewpoint - Ironwood Pharmaceuticals has shown strong performance in its recent earnings report, significantly exceeding expectations in both earnings and revenues, which has led to a notable increase in its stock price [3][4]. Financial Performance - Ironwood reported adjusted earnings of 24 cents per share for Q3 2025, surpassing the Zacks Consensus Estimate of 9 cents, and up from 2 cents per share in the same quarter last year [3]. - Total revenues for Q3 were $122.1 million, exceeding the Zacks Consensus Estimate of $68 million, representing a year-over-year increase of approximately 33.3% [3]. - The company's marketed product, Linzess, generated net sales of $314.9 million in the U.S., reflecting a 40% year-over-year increase due to improved pricing and strong demand [4]. - Ironwood's share of net profit from Linzess sales in the U.S. was $119.6 million, marking a 35% increase year-over-year [4]. - Total costs and expenses in Q3 were $46.6 million, down 29.4% from the previous year [5]. - Adjusted EBITDA for Q3 was $81.8 million, showing a significant year-over-year increase [6]. - As of September 30, 2025, Ironwood had cash and cash equivalents of $140.4 million, up from $92.9 million as of June 30, 2025 [6]. 2025 Guidance - Due to strong performance, Ironwood raised its full-year 2025 revenue guidance to a range of $290-$310 million, up from the previous range of $260-$290 million [7]. - U.S. sales of Linzess are now expected to be between $860-$890 million, an increase from the earlier projection of $800-$850 million [7]. - The company anticipates adjusted EBITDA of more than $135 million for 2025, revised from the previous expectation of more than $105 million [8]. Market Position and Estimates - Despite the strong performance, recent estimates for Ironwood have trended downward, with a consensus estimate shift of -87.5% [9]. - Ironwood holds a Zacks Rank 3 (Hold), indicating an expectation of an in-line return in the coming months [11]. Industry Comparison - Ironwood is part of the Zacks Medical - Drugs industry, where United Therapeutics, a peer, reported revenues of $799.5 million for the last quarter, reflecting a year-over-year increase of 6.8% [12]. - United Therapeutics is expected to post earnings of $6.74 per share for the current quarter, indicating a change of +8.9% from the previous year [13].