Assertio Shares Plunge After 2023 Outlook Withdrawal

 

• Assertio (ASRT) stock is dropping alongside its earnings report for the second quarter of 2023.
• The company missed revenue estimates for the quarter.
• It also withdrew its outlook for the full year of 2023

Assertio (NASDAQ:ASRT) stock is falling hard on Friday after the pharmaceutical company released its second-quarter earnings report.

Assertio disappointed investors with its adjusted earnings per share of 19 cents. That’s worse than the 22 cents per share Wall Street was predicting. It’s also a drop from the 28 cents per share reported in the same period of the year prior.

That disappointment comes despite the company reporting positive revenue of $40.99 million. This beats out analysts’ revenue estimate of $39.83 million for the quarter and represents a 13% increase year-over-year (YOY).

One negative that investors aren’t happy about is Asserito’s guidance for 2023, or lack thereof. The company withdrew its guidance for the year to evaluate the effect of the U.S. Food and Drug Administration (FDA) approving a generic indomethacin suppository.

Spectrum Pharmaceuticals Acquisition

Assertio also notes that it completed its acquisition of Spectrum Pharmaceuticals in the recent earnings report. President and CEO Dan Peisert had this to say about the news:

“The acquisition of Spectrum Pharmaceuticals and its innovative ROLVEDONTM asset is transformative to our Company. ROLVEDON continues its exceptional launch trajectory as second quarter sales increased to $21.0 million1, from $15.6 million in the first quarter. We intend to maintain their highly effective commercial team to continue expanding on the success of this exciting new asset.”

https://investorplace.com/2023/08/why-is-assertio-asrt-stock-down-46-today/