Incyte (INCY) Up 7.5% Since Last Earnings Report: Can It Continue?

Core Viewpoint - Incyte's recent earnings report showed mixed results, with adjusted earnings missing estimates while total revenues grew year over year, driven by its lead drug Jakafi and the launch of Opzelura cream. The stock has seen a positive trend, outperforming the S&P 500, but analysts are cautious about future performance leading up to the next earnings release [1][2][3]. Financial Performance - Incyte reported Q1 2024 adjusted earnings of 64 cents per share, missing the Zacks Consensus Estimate of 88 cents, but up from 37 cents per share in the same quarter last year [2]. - Total revenues for the quarter were $881 million, reflecting a 9% year-over-year growth, but falling short of the Zacks Consensus Estimate of $935.8 million [3]. - Jakafi revenues were $571.8 million, down 1% year over year, missing the consensus estimate of $634 million [4]. - Opzelura cream generated $85.7 million in sales, a 52% increase year over year, but also missed the consensus estimate of $100 million [5][6]. - Zynyz, a newly approved drug, generated $0.46 million in sales, while Iclusig sales were $30.3 million, up 10% year over year, beating estimates [7]. - Minjuvi's revenues surged 264% to $23.8 million, exceeding the consensus estimate of $21.9 million [8]. Expenses and Cash Position - Adjusted research and development expenses totaled $388.4 million, up 3% year over year, while adjusted selling, general and administrative expenses were $277.3 million, down 6% [11]. - As of March 31, 2024, Incyte's cash and cash equivalents stood at $3.9 billion, an increase from $3.7 billion at the end of 2023 [12]. Guidance and Pipeline Updates - Incyte reiterated its 2024 guidance, expecting Jakafi revenues between $2.69 billion and $2.75 billion, with adjusted R&D expenses projected at $1.58 billion to $1.61 billion [13]. - The FDA accepted the biologics license application for axatilimab for Priority Review, with a decision expected on August 28, 2024 [14][15]. Market Sentiment and Estimates - Recent estimates for Incyte have trended downward, with a consensus estimate shift of -5.85% [16]. - The company currently holds a Zacks Rank 3 (Hold), indicating expectations for an in-line return in the coming months [18].