Why Is Amarin Stock Trading Lower After Q4 Earnings?
Portfolio Pulse from Vandana Singh
Amarin Corporation Plc (NASDAQ:AMRN) reported Q4 2023 revenues of $74.71 million, a 17% decrease year-over-year, primarily due to lower VASCEPA sales in the U.S. due to generic competition. Despite this, revenues beat the consensus estimate of $63.81 million. The company nearly broke even, outperforming the expected loss. Amarin has initiated a share repurchase program of up to $50 million and is on track to save $40 million annually from a reduction in force announced in July 2023. Shares fell 17.8% to $1.09.
February 29, 2024 | 5:12 pm
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Amarin's Q4 2023 earnings report showed a revenue decline but beat consensus estimates. The company announced a share repurchase program and is implementing cost-saving measures.
The decline in Amarin's stock price following the Q4 earnings report is likely due to the reported 17% year-over-year revenue decline, primarily from decreased VASCEPA sales in the U.S. due to generic competition. Although the company beat revenue estimates and announced a share repurchase program, the immediate market reaction was negative, reflecting concerns over the revenue decline and competitive pressures.
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IMPORTANCE 90
RELEVANCE 100