Vanda Pharmaceuticals (VNDA) broke out in bullish fashion Thursday after the biotech topped quarterly sales views and obliterated profit expectations thanks largely to a sleeping-disorder drug. Vanda stock rocketed 16.4%, near 23.80, in higher-than-average volume.




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In morning trading on the stock market today, Vanda stock broke out of a consolidation with a buy point at 23.60. Shares were well above their 50-day moving average for the first time this month.

During the third quarter, Vanda earnings came in at 20 cents per share, excluding items. That crushed the view of analysts polled by Zacks Investment Research for 1 cent. In the year-earlier period, Vanda earnings posted a 3-cent loss per share.

Total revenue also climbed nearly 19% to $49.1 million, slightly above forecasts for $49 million. The lion’s share of sales growth in Vanda earnings came from Hetlioz, which treats a sleeping disorder. Hetlioz sales jumped more than 34% to $29.9 million.

Sales of schizophrenia treatment Fanapt ticked up a fraction to $19.2 million.

Vanda Earnings: Sales Outlook

Vanda reiterated its full-year outlook for $180 million to $200 million in net product sales. Analysts called for $191 million in revenue. The biotech stock called for Hetlioz to generate $108 million to $118 million in sales. It sees $72 million to $82 million from Fanapt sales.

Vanda stock has Composite and Relative Strength ratings of 90 out of a best-possible 99 from Investor’s Business Daily. Vanda stock is ranked No. 12 out of 515 biotech stocks. In morning action, biotech stocks collectively edged up a fraction.

Biotech stocks are currently ranked No. 49 out of 197 groups tracked by IBD.

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