Neurocrine Biosciences handily beat Wall Street's third-quarter expectations Tuesday, leading NBIX stock to extend its run beyond the 5% chase zone.
During the quarter, Neurocrine's tardive dyskinesia treatment, Ingrezza, brought in $376 million in sales. Tardive dyskinesia is a movement disorder that can occur as a side effect of antipsychotic medicines. That was above expectations and led Neurocrine to boost its 2022 outlook.
"We believe this showcases the growth prospects that remain in Ingrezza, though with these sales requiring slightly above-(expected) expenses to achieve and a few pipeline delays, we expect the focus will continue to shift toward pipeline being the bigger longer-term value driver," RBC Capital Markets analyst Brian Abrahams said in a report to clients.
But on today's stock market, NBIX stock jumped 3.7% to 119.36. Shares recently broke out of a flat base with a buy point at 109.36, according to MarketSmith.com. Neurocrine stock is now above the buy zone that runs from 109.36 to 114.83.
NBIX Stock: Earnings Surge
Overall revenue, which includes collaboration revenue, climbed 31% to $387.9 million and beat forecasts for $377 million, according to FactSet. Earnings surged almost 69% to $1.08 per share, on an adjusted basis. That also topped NBIX stock analysts' forecast for 81 cents a share.
RBC's Abrahams kept his sector perform rating and 101 price target on NBIX stock despite the beat and raise. Now, the company expects Ingrezza to generate $1.4 billion to $1.425 billion in full-year sales. Analysts called for a $1.4 billion from Ingrezza and overall revenue of $1.46 billion.
NBIX stock is highly rated, according to IBD Digital. Shares have a strong Relative Strength Rating of 95. This puts them in the top 5% of all stocks in terms of 12-month performance. NBIX stock also has a bullish Composite Rating of 96, which measures fundamental and technical strength.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
