A Glimpse of Vanda Pharma's Earnings Potential

Vanda Pharma VNDA is preparing to release its quarterly earnings on Wednesday, 2025-05-07. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Vanda Pharma to report an earnings per share (EPS) of $-0.02.

Vanda Pharma bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Earnings Track Record

Last quarter the company beat EPS by $0.06, which was followed by a 5.96% drop in the share price the next day.

Here's a look at Vanda Pharma's past performance and the resulting price change:

Stock Performance

Shares of Vanda Pharma were trading at $4.59 as of May 05. Over the last 52-week period, shares are down 18.75%. Given that these returns are generally negative, long-term shareholders are likely a little upset going into this earnings release.

Analyst Observations about Vanda Pharma

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Vanda Pharma.

The consensus rating for Vanda Pharma is Buy, based on 2 analyst ratings. With an average one-year price target of $20.0, there's a potential 335.73% upside.

Peer Ratings Overview

The following analysis focuses on the analyst ratings and average 1-year price targets of Emergent BioSolutions, 2seventy bio and Lexicon Pharmaceuticals, three prominent industry players, providing insights into their relative performance expectations and market positioning.

• Analysts currently favor an Buy trajectory for Emergent BioSolutions, with an average 1-year price target of $15.0, suggesting a potential 226.8% upside.
• Analysts currently favor an Neutral trajectory for 2seventy bio, with an average 1-year price target of $5.0, suggesting a potential 8.93% upside.
• Analysts currently favor an Buy trajectory for Lexicon Pharmaceuticals, with an average 1-year price target of $3.8, suggesting a potential 17.21% downside.

Comprehensive Peer Analysis Summary

Within the peer analysis summary, vital metrics for Emergent BioSolutions, 2seventy bio and Lexicon Pharmaceuticals are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Vanda Pharma ranks highest in Revenue Growth among its peers. It also has the highest Gross Profit margin. However, it has the lowest Return on Equity.

Unveiling the Story Behind Vanda Pharma

Vanda Pharmaceuticals Inc is a biopharmaceutical company engaged in the development and commercialization of therapies to address high unmet medical needs and improve the lives of patients. Its commercial portfolio comprises three products; HETLIOZ for the treatment of Non-24-Hour Sleep-Wake Disorder (Non-24) & nighttime sleep disturbances in Smith-Magenis Syndrome (SMS); Fanapt for the treatment of schizophrenia; and PONVORY. Its other products include VHX-896, ASO Molecules, VQW-765, Tradipitant, VTR-297 and VHX-896. The majority of revenue is derived from the Fanapt product sales. Geographically, the company sells its product predominantly in the United States, and also in Israel, Europe, and Canada.

Key Indicators: Vanda Pharma's Financial Health

Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.

Revenue Growth: Vanda Pharma's revenue growth over a period of 3 months has been noteworthy. As of 31 December, 2024, the company achieved a revenue growth rate of approximately 17.48%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Health Care sector.

Net Margin: Vanda Pharma's net margin is impressive, surpassing industry averages. With a net margin of -9.24%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Vanda Pharma's ROE excels beyond industry benchmarks, reaching -0.91%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of -0.75%, the company showcases effective utilization of assets.

Debt Management: Vanda Pharma's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.02.

To track all earnings releases for Vanda Pharma visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.