Why Is Ligand (LGND) Up 4% Since Last Earnings Report?

Core Viewpoint - Ligand Pharmaceuticals reported a decline in earnings and total revenues in Q1 2024, but still managed to beat earnings estimates, while the stock has shown a positive trend in the past month, outperforming the S&P 500 [1][2][10]. Financial Performance - Core adjusted diluted net income per share was $1.20, a 10% decline year-over-year, but above the Zacks Consensus Estimate of $1.13 [2]. - Total revenues were $31.0 million, down 30% from the previous year, missing the Zacks Consensus Estimate of $32.5 million [2]. - Royalty revenues increased by 8% year-over-year to $19.1 million, driven by royalties from several pharmaceutical products [4]. - Captisol sales decreased by 13% year-over-year to $9.2 million due to unfavorable timing of customer orders, with no sales related to COVID-19 recorded during the quarter [4]. - Contract revenues fell 83% year-over-year to $2.6 million, attributed to a significant milestone payment received in the prior year [5]. Expenses and Cash Position - Research and development expenses decreased by 10% to $6.0 million, while general and administrative expenses increased by 1% to $11.0 million [5]. - Cash, cash equivalents, and short-term investments rose to $310.6 million as of March 31, 2024, compared to $170.3 million as of December 31, 2023 [6]. 2024 Guidance - Ligand maintained its 2024 revenue guidance of $130-$142 million, with royalty revenues expected between $90-$95 million and contract revenues between $15 million and $20 million [7]. - Captisol sales are projected to be between $25 million and $27 million, excluding any COVID-19 related sales [8]. - The company expects adjusted diluted EPS to be in the range of $4.25-$4.75 [7]. Market Position and Estimates - Estimates for Ligand have trended downward over the past month, with a poor Growth Score of F and a Momentum Score of C [8]. - The stock has an aggregate VGM Score of F, indicating a weak overall performance across investment strategies [9]. - Despite the downward estimate revisions, Ligand holds a Zacks Rank 1 (Strong Buy), suggesting an expectation of above-average returns in the coming months [10]. Industry Comparison - Ligand is part of the Zacks Medical - Biomedical and Genetics industry, where Geron (GERN) has seen a 5% gain over the past month, reporting a significant year-over-year revenue increase of 1400% [11]. - Geron has a Zacks Rank 3 (Hold) and a VGM Score of F, indicating mixed performance within the industry [12].