1/16/2024 0 Comments Amrn yahoo conversationHere is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions. ![]() Harnessing the Power of Earnings Estimate RevisionsĮmpirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Investors should show their appreciation for this improving business trend by pushing the stock higher. Their transaction of large amounts of shares then leads to price movement for the stock.įundamentally speaking, rising earnings estimates and the consequent rating upgrade for Amarin imply an improvement in the company's underlying business. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. ![]() The change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. Most Powerful Force Impacting Stock Prices They may find it difficult to make decisions based on rating upgrades by Wall Street analysts, as these are mostly driven by subjective factors that are hard to see and measure in real time.Īs such, the Zacks rating upgrade for Amarin is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price. Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. The Zacks Consensus Estimate - the consensus of EPS estimates from the sell-side analysts covering the stock - for the current and following years is tracked by the system. The sole determinant of the Zacks rating is a company's changing earnings picture. ![]() An upward trend in earnings estimates - one of the most powerful forces impacting stock prices - has triggered this rating change. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Amarin (AMRN) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Shares of Amarin have returned -18.5% over the past month versus the Zacks S&P 500 composite's -2.2% change. View all Key Company Metrics for Amarin here> The reported number represents a change of +75.8% year over year. Licensing revenue: $1.15 million compared to the $1.99 million average estimate based on three analysts. The reported number represents a year-over-year change of -27.3%. Product revenues: $64.90 million versus the three-analyst average estimate of $55.43 million. ![]() Product Revenue - US: $62.40 million compared to the $52.77 million average estimate based on two analysts. Product Revenue - Europe: $0.80 million versus the two-analyst average estimate of $0.83 million. Here is how Amarin performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.Īs these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. With the consensus EPS estimate being -$0.02, the EPS surprise was +100.00%. The reported revenue represents a surprise of +14.77% over the Zacks Consensus Estimate of $57.56 million. EPS of $0.00 for the same period compares to $0.02 a year ago. Amarin (AMRN) reported $66.06 million in revenue for the quarter ended September 2023, representing a year-over-year decline of 26.5%.
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