TG Therapeutics (TGTX) stock crashed Monday — reversing a breakout — after missing third-quarter profit expectations, though sales of its multiple sclerosis treatment beat forecasts.
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During the three months ended Sept. 30, TG Therapeutics earned 2 cents per share. That missed the Street’s view by a penny, according to FactSet. On an adjusted basis, earnings came in at 4 cents per share, meeting expectations. Earnings also tumbled markedly from the year-earlier period.
Sales of Briumvi, the MS drug, topped expectations at $83.3 million. Analysts projected $77.4 million. But Evercore ISI analyst Michael DiFiore says TG Therapeutics stock took a hit due to Briumvi missing “whisper” expectations for $85 million.
“We think that this morning’s negative reaction is perhaps misplaced, however, as TG Therapeutics had signaled second quarter to third quarter growth to be muted due to typical summer seasonality, and that growth would pick up again in the fourth quarter,” DiFiore said in a report.
In early trades on today’s stock market, TG Therapeutics stock tumbled more than 7% to 24.80. Shares look likely to undercut a buy point at 26.41 out of a cup base, according to MarketSurge.
TG Therapeutics Stock: Sequential Growth Slows
During the September-ended quarter, Briumvi sales climbed 14.7% sequentially. That slowed significantly from 43.8% sequential growth in the second quarter, and 17.2% growth in the first quarter.
However, “implied fourth-quarter guidance suggests that quarter-over-quarter growth could range from 13% to 19%,” DiFiore said.
For the year, TG Therapeutics now expects $300 million to $305 million in sales of Briumvi. That’s up $7.5 million, at the midpoint, from the company’s previous outlook.
TG Therapeutics stock has a strong Relative Strength Rating of 97, according to IBD Digital. This puts its 12-month performance in the leading 3% of all stocks. Shares also have a strong Composite Rating of 96, a measure of fundamental and technical strength.
Follow Allison Gatlin on X, the platform formerly known as Twitter, at @IBD_AGatlin.
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