Please ensure Javascript is enabled for purposes of website accessibility

Horizon Therapeutics Reports Q4 Results, Beats Revenue Target

By Mark Prvulovic – Feb 26, 2020 at 3:35PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Shares are up 4% following the announcement.

On Wednesday morning, Horizon Therapeutics (HZNP -1.28%) announced its fourth-quarter and full-year financial results. Thanks to strong sales of its top drug, a gout treatment known as Krystexxa, the company beat both its revenue and earnings estimates.

Fourth-quarter revenue came in at $363.5 million, which is up 2.3% from last year. The biggest revenue driver for the company came from its orphan and rheumatology department, which brought in $269.8 million in Q4 2019, up 13.6% from Q4 2018. Sales of Krystexxa came in at $110.7 million, a 33% increase since last year. Horizon's second top-performing drug, Ravicti, is used to help prevent ammonia buildup in patients with urea cycle disorder. The drug's sales came in at $68.5 million for the quarter, a 14% increase from Q4 2018.

Abstract picture of a scientist touching a tablet with a DNA strand and other information appearing.

Image source: Getty Images.

Net income for the fourth quarter was $592.7 million. However, $555.9 million of that figure was due to income tax benefits it said is "related to an intra-company transfer of intellectual property assets." When looking at the income before tax, the figure is reduced to a $36.9 million net income -- a decline from Q4 2018 when net income before taxes was $52.6 million.

Surprising Wall Street

The pharmaceutical company managed to handily beat out Wall Street's expectations for the quarter. Analysts had a $349.2 million revenue target for the quarter, a figure that Horizon Therapeutics beat by $14.3 million. Earnings per share was expected to come in at $0.43, a far cry from the $2.84 EPS reported by Horizon. However, since most of this revenue came from income tax benefits, it's a slightly exaggerated figure.

Mark Prvulovic has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Horizon Therapeutics Public Limited Company Stock Quote
Horizon Therapeutics Public Limited Company
HZNP
$61.89 (-1.28%) $0.80

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
326%
 
S&P 500 Returns
102%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 10/02/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.