Alkermes Q4 Earnings Report Analysis
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
0mins
Should l Buy ALKS?
Source: seekingalpha
- Earnings Performance: Alkermes reported a Q4 GAAP EPS of $0.29, missing expectations by $0.05, indicating pressure on profitability that could affect investor confidence.
- Revenue Decline: The company generated $384.5 million in revenue, a 10.6% year-over-year decline, although it beat market expectations by $3.01 million, yet the ongoing revenue drop poses challenges for future growth.
- 2026 Financial Outlook: Total revenue expectations for 2026 are set between $1.73 billion and $1.84 billion, below the market consensus of $1.83 billion, reflecting cautious sentiment regarding the company's future growth prospects.
- Cost and Expenditure: Projected R&D expenses for 2026 are between $445 million and $485 million, while SG&A expenses are expected to range from $890 million to $930 million, highlighting the company's strategic focus on cost control and R&D investment.
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Analyst Views on ALKS
Wall Street analysts forecast ALKS stock price to rise
12 Analyst Rating
10 Buy
2 Hold
0 Sell
Strong Buy
Current: 30.250
Low
37.00
Averages
46.20
High
58.00
Current: 30.250
Low
37.00
Averages
46.20
High
58.00
About ALKS
Alkermes plc is Ireland-based biopharmaceutical company that seeks to develop medicines in the field of neuroscience. The Company has a portfolio of commercial products for the treatment of alcohol dependence, opioid dependence, schizophrenia and bipolar I disorder and a pipeline of clinical and preclinical candidates in development for neurological disorders. It focuses on commercial products, such as LYBALVI, ARISTADA/ARISTADA INITIO and VIVITROL, and advancing the development of pipeline programs focused on neurological disorders. LYBALVI is a once-daily, oral atypical antipsychotic drug for the treatment of adults with schizophrenia and for the treatment of adults with bipolar I disorder, as a maintenance monotherapy or for the acute treatment of manic or mixed episodes, as monotherapy or an adjunct to lithium or valproate. ARISTADA is an extended-release intramuscular injectable suspension for the treatment of schizophrenia. It has a manufacturing facility in Wilmington, Ohio.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Alkermes 2026 Financial Outlook and Acquisition Progress
- Revenue Growth Expectations: Alkermes anticipates total revenues exceeding $1.73 billion in 2026, with adjusted EBITDA projected between $370 million and $410 million, indicating a strategic decision to diversify income following the Avadel acquisition.
- Strategic Significance of Avadel Acquisition: CEO Richard F. Pops emphasized that the acquisition not only adds a new revenue stream but also accelerates Alkermes' entry into the commercial sleep medicine market, particularly through LUMRYZ and the upcoming launch of alixorexton.
- Strong Product Sales Performance: In 2025, Alkermes reported proprietary product sales of $1.2 billion, a 9% year-over-year increase, with LUMRYZ contributing approximately $279 million in net sales, expected to continue growing in 2026, further solidifying market position.
- Financial Health Status: The company ended 2025 with $1.3 billion in cash and investments, maintaining good financial flexibility to support future growth despite utilizing $775 million for the Avadel acquisition and taking on $1.525 billion in long-term loans.
See More
Alkermes Reports Decline in Q4 Earnings
- Earnings Decline: Alkermes plc reported a fourth-quarter net income of $49.34 million, translating to $0.29 per share, which represents a significant drop from last year's $146.50 million and $0.88 per share, indicating a marked decline in the company's profitability.
- Revenue Decrease: The company's revenue for the fourth quarter was $384.54 million, a 10.6% decrease from $429.98 million last year, reflecting weakened market demand and increased competition.
- Financial Performance Comparison: Alkermes' earnings per share fell by 66.0% compared to the same period last year, which not only impacts investor confidence but may also pressure the stock price and affect the company's future financing capabilities.
- Uncertain Market Outlook: With both earnings and revenue declining, Alkermes faces greater market challenges and may need to reassess its strategy to cope with industry changes and competitive pressures.
See More
Alkermes Reports 2025 Financial Results and 2026 Outlook
- Financial Performance Overview: Alkermes plc reported its financial results for the quarter and year ended December 31, 2025, indicating continued growth expectations for 2026, although specific figures were not disclosed, reflecting the company's stability and potential in the biopharmaceutical sector.
- Investor Call Arrangement: The company will host a conference call and webcast at 8:00 a.m. EST (1:00 p.m. GMT) to discuss financial results and future outlook, enhancing communication and transparency with investors.
- Product Portfolio and R&D: Alkermes focuses on neuroscience, with proprietary commercial products for alcohol and opioid dependence, and is developing late-stage clinical candidates for narcolepsy and other neurological disorders, demonstrating its commitment to innovative drug development.
- Global Business Presence: Headquartered in Ireland, Alkermes has a research and development center in Massachusetts and a manufacturing facility in Ohio, indicating its global business expansion and technical capabilities.
See More
Alkermes Q4 Earnings Report Analysis
- Earnings Performance: Alkermes reported a Q4 GAAP EPS of $0.29, missing expectations by $0.05, indicating pressure on profitability that could affect investor confidence.
- Revenue Decline: The company generated $384.5 million in revenue, a 10.6% year-over-year decline, although it beat market expectations by $3.01 million, yet the ongoing revenue drop poses challenges for future growth.
- 2026 Financial Outlook: Total revenue expectations for 2026 are set between $1.73 billion and $1.84 billion, below the market consensus of $1.83 billion, reflecting cautious sentiment regarding the company's future growth prospects.
- Cost and Expenditure: Projected R&D expenses for 2026 are between $445 million and $485 million, while SG&A expenses are expected to range from $890 million to $930 million, highlighting the company's strategic focus on cost control and R&D investment.
See More
Alkermes Set to Announce Q4 Earnings on February 25
- Earnings Announcement Date: Alkermes is set to release its Q4 earnings on February 25 before market open, with consensus EPS estimate at $0.45 and revenue at $381.49 million, reflecting an 11.3% year-over-year decline, which could directly impact the company's stock performance.
- Performance Expectation Analysis: Over the past year, Alkermes has beaten EPS estimates 50% of the time and revenue estimates 75% of the time, indicating a relative stability in managing market expectations, potentially boosting investor confidence.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen two upward revisions and one downward, while revenue estimates experienced four upward revisions and two downward, suggesting a degree of volatility in market expectations regarding Alkermes' future performance, which may influence investor decisions.
- Industry Conference Participation: Alkermes presented at the 44th Annual J.P. Morgan Healthcare Conference, enhancing its visibility and influence within the industry, which may pave the way for future collaboration and investment opportunities.
See More
Key Wall Street Rating Changes Overview
- Morgan Stanley Upgrade: Morgan Stanley upgraded Booking Holdings from equal weight to overweight, citing the online travel company's stock as undervalued, with expectations that it will continue to dominate the travel market and leverage robust customer data to drive high-margin direct business.
- JPMorgan's View on Domino's: JPMorgan upgraded Domino's from neutral to overweight, based on its steady market share and value-driven business model, indicating a good buying opportunity at the current stock price of approximately $400.
- RBC's Assessment of Blackstone: RBC initiated coverage on Blackstone with an outperform rating, highlighting the private equity firm's dual benefits from retail growth and an improving real estate cycle, which are expected to drive nearly 20% earnings growth.
- UBS Upgrade for America Movil: UBS upgraded America Movil from neutral to buy, revising its price target from $23.60 to $30.00, reflecting the upside potential in the Latin American telecommunications market.
See More
Alkermes 2026 Financial Outlook and Acquisition Progress
- Revenue Growth Expectations: Alkermes anticipates total revenues exceeding $1.73 billion in 2026, with adjusted EBITDA projected between $370 million and $410 million, indicating a strategic decision to diversify income following the Avadel acquisition.
- Strategic Significance of Avadel Acquisition: CEO Richard F. Pops emphasized that the acquisition not only adds a new revenue stream but also accelerates Alkermes' entry into the commercial sleep medicine market, particularly through LUMRYZ and the upcoming launch of alixorexton.
- Strong Product Sales Performance: In 2025, Alkermes reported proprietary product sales of $1.2 billion, a 9% year-over-year increase, with LUMRYZ contributing approximately $279 million in net sales, expected to continue growing in 2026, further solidifying market position.
- Financial Health Status: The company ended 2025 with $1.3 billion in cash and investments, maintaining good financial flexibility to support future growth despite utilizing $775 million for the Avadel acquisition and taking on $1.525 billion in long-term loans.
See More
Alkermes Reports Decline in Q4 Earnings
- Earnings Decline: Alkermes plc reported a fourth-quarter net income of $49.34 million, translating to $0.29 per share, which represents a significant drop from last year's $146.50 million and $0.88 per share, indicating a marked decline in the company's profitability.
- Revenue Decrease: The company's revenue for the fourth quarter was $384.54 million, a 10.6% decrease from $429.98 million last year, reflecting weakened market demand and increased competition.
- Financial Performance Comparison: Alkermes' earnings per share fell by 66.0% compared to the same period last year, which not only impacts investor confidence but may also pressure the stock price and affect the company's future financing capabilities.
- Uncertain Market Outlook: With both earnings and revenue declining, Alkermes faces greater market challenges and may need to reassess its strategy to cope with industry changes and competitive pressures.
See More
Alkermes Reports 2025 Financial Results and 2026 Outlook
- Financial Performance Overview: Alkermes plc reported its financial results for the quarter and year ended December 31, 2025, indicating continued growth expectations for 2026, although specific figures were not disclosed, reflecting the company's stability and potential in the biopharmaceutical sector.
- Investor Call Arrangement: The company will host a conference call and webcast at 8:00 a.m. EST (1:00 p.m. GMT) to discuss financial results and future outlook, enhancing communication and transparency with investors.
- Product Portfolio and R&D: Alkermes focuses on neuroscience, with proprietary commercial products for alcohol and opioid dependence, and is developing late-stage clinical candidates for narcolepsy and other neurological disorders, demonstrating its commitment to innovative drug development.
- Global Business Presence: Headquartered in Ireland, Alkermes has a research and development center in Massachusetts and a manufacturing facility in Ohio, indicating its global business expansion and technical capabilities.
See More
Alkermes Q4 Earnings Report Analysis
- Earnings Performance: Alkermes reported a Q4 GAAP EPS of $0.29, missing expectations by $0.05, indicating pressure on profitability that could affect investor confidence.
- Revenue Decline: The company generated $384.5 million in revenue, a 10.6% year-over-year decline, although it beat market expectations by $3.01 million, yet the ongoing revenue drop poses challenges for future growth.
- 2026 Financial Outlook: Total revenue expectations for 2026 are set between $1.73 billion and $1.84 billion, below the market consensus of $1.83 billion, reflecting cautious sentiment regarding the company's future growth prospects.
- Cost and Expenditure: Projected R&D expenses for 2026 are between $445 million and $485 million, while SG&A expenses are expected to range from $890 million to $930 million, highlighting the company's strategic focus on cost control and R&D investment.
See More
Alkermes Set to Announce Q4 Earnings on February 25
- Earnings Announcement Date: Alkermes is set to release its Q4 earnings on February 25 before market open, with consensus EPS estimate at $0.45 and revenue at $381.49 million, reflecting an 11.3% year-over-year decline, which could directly impact the company's stock performance.
- Performance Expectation Analysis: Over the past year, Alkermes has beaten EPS estimates 50% of the time and revenue estimates 75% of the time, indicating a relative stability in managing market expectations, potentially boosting investor confidence.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen two upward revisions and one downward, while revenue estimates experienced four upward revisions and two downward, suggesting a degree of volatility in market expectations regarding Alkermes' future performance, which may influence investor decisions.
- Industry Conference Participation: Alkermes presented at the 44th Annual J.P. Morgan Healthcare Conference, enhancing its visibility and influence within the industry, which may pave the way for future collaboration and investment opportunities.
See More
Key Wall Street Rating Changes Overview
- Morgan Stanley Upgrade: Morgan Stanley upgraded Booking Holdings from equal weight to overweight, citing the online travel company's stock as undervalued, with expectations that it will continue to dominate the travel market and leverage robust customer data to drive high-margin direct business.
- JPMorgan's View on Domino's: JPMorgan upgraded Domino's from neutral to overweight, based on its steady market share and value-driven business model, indicating a good buying opportunity at the current stock price of approximately $400.
- RBC's Assessment of Blackstone: RBC initiated coverage on Blackstone with an outperform rating, highlighting the private equity firm's dual benefits from retail growth and an improving real estate cycle, which are expected to drive nearly 20% earnings growth.
- UBS Upgrade for America Movil: UBS upgraded America Movil from neutral to buy, revising its price target from $23.60 to $30.00, reflecting the upside potential in the Latin American telecommunications market.
See More
