Earnings Preview: Vivus

| About: Vivus, Inc. (VVUS)

Vivus, Inc. (NASDAQ:VVUS) is scheduled to report its Q2 2012 results on August 7, 2012, after the bell. The Street expects EPS of ($0.23) loss.

In this article, I will recap the historical results of the company, its latest EPS estimates vs. surprises, the latest news from VVUS and the news from its closest competitors.

Recent EPS Actuals vs. Estimates

The company has failed to meet analysts' estimates in the last two quarters. In the last quarter, it reported ($0.20) loss per share, failing to meet analyst estimates of ($0.14) loss.

VIVUS Inc. EPS Historical Results vs Estimates

The consensus EPS estimate is ($0.23) loss based on 13 analysts' estimates, down from ($0.20) loss a year ago. The median target price by analysts for the stock is $38.00.

Average recommendation: Overweight

Source: Marketwatch

Analyst Upgrades and Downgrades

  • On July 18, 2012, Rodman & Renshaw reiterated Mkt Outperform rating for the company.
  • On July 18, 2012, Jefferies & Company upgraded the company from Moderate Sell to Hold.
  • On July 17, 2012, Brean Murray downgraded the company from Buy to Hold.
  • On April 30, 2012, MLV & Co reiterated Buy rating for the company.
  • On February 23, 2012, MLV & Co reiterated Buy rating for the company.
  • On February 23, 2012, JMP Securities reiterated Mkt Outperform rating for the company.
  • On February 22, 2012, Rodman & Renshaw upgraded the company from Mkt Perform to Mkt Outperform.
  • On February 22, 2012, Brean Murray upgraded the company from Sell to Hold.

Latest News

  • On July 18, 2012, Vivus Inc announced that the U.S. Food and Drug Administration has approved Qsymia (pronounced Kyoo sim ee' uh) as an adjunct to a reduced-calorie diet and increased physical activity for chronic weight management in adult patients with an initial body mass index of 30 or greater (obese), or 27 or greater (overweight) in the presence of at least one weight-related comorbidity, such as hypertension, type 2 diabetes mellitus or high cholesterol (dyslipidemia).
  • On April 27, 2012, Vivus Inc announced that the U.S. Food and Drug Administration has approved STENDRA (avanafil) tablets for the treatment of erectile dysfunction, marking the first new prescription agent approved in nearly a decade for the condition that afflicts as many as 30 million men in the U.S. STENDRA (avanafil) is licensed from Mitsubishi Tanabe Pharma Corporation.
  • On April 10, 2012, Reuters reported that U.S. health regulators have extended by three months their deadline for making an approval decision on Vivus Inc's diet drug Qnexa, the Company said on Monday, marking the latest delay to bring a new obesity treatment to market.
  • On February 28, 2012, Vivus, Inc. announced that it is offering to sell, subject to market and other conditions, 8,500,000 shares of its common stock pursuant to an effective shelf registration statement in an underwritten public offering.
  • On February 23, 2012, Vivus, Inc. announced that the U.S. Food and Drug Administration Endocrinologic and Metabolic Drugs Advisory Committee recommended Qnexa be granted marketing approval by the FDA for the treatment of obesity in adults.

Competitors

Arena Pharmaceuticals (NASDAQ:ARNA), and Orexigen Therapeutics (NASDAQ:OREX) are considered major competitors for Vivus and the chart below compares the stock price changes as a percentage for the selected companies and S&P 500 index for the last one-year period.

VVUS Chart

VVUS data by YCharts

Competitors' Latest Development

  • On July 11, 2012, Dow Jones reported that Orexigen Therapeutics, Inc. expects to complete enrollment in an interim study of cardiovascular risks associated with its weight loss treatment Contrave in the first quarter next year, potentially reducing its initial estimates by half.
  • On June 27, 2012, Arena Pharmaceuticals, Inc. and Eisai Inc. announced that the U.S. Food and Drug Administration has approved BELVIQ (pronounced BEL-VEEK) as an adjunct to a reduced-calorie diet and increased physical activity for chronic weight management in adult patients with an initial body mass index of 30 kg/m2 or greater (obese), or 27 kg/m2 or greater (overweight) in the presence of at least one weight related comorbid condition (e.g., hypertension, dyslipidemia, type 2 diabetes).
  • On June 27, 2012, Reuters reported that watchdog group Public Citizen urged U.S. regulators on June 26, 2012, not to approve Arena Pharmaceuticals' experimental diet pill lorcaserin, citing concerns it could increase patients' risk of heart valve damage.
  • On May 21, 2012, Arena Pharmaceuticals announced the completion of an underwritten public offering of 12,650,000 shares of its common stock, including 1,650,000 shares sold pursuant to the full exercise of an over-allotment option previously granted to the underwriters.
  • On May 16, 2012, Arena Pharmaceuticals announced the pricing of an underwritten public offering of 11,000,000 shares of its common stock, offered at a price to the public of $5.50 per share.
  • On May 15, 2012, Arena Pharmaceuticals announced that it intends to offer and sell, subject to market and other conditions, shares of its common stock in an underwritten public offering.

Technical Overview


The stock has a market capitalization of $1.99B and is currently trading at $19.96 with a 52-week range of $6.13-$31.21. The stock's year-to-date performance has been 104.72%. It is currently trading above 200 SMA, but below 20 and 50 SMA.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.