Alkermes (NASDAQ:ALKS) Releases Earnings Results, Misses Expectations By $0.14 EPS

Alkermes (NASDAQ:ALKS) announced its quarterly earnings data on Wednesday. The company reported $0.29 earnings per share for the quarter, missing the consensus estimate of $0.43 by ($0.14), FiscalAI reports. Alkermes had a net margin of 22.27% and a return on equity of 21.81%. The business had revenue of $384.55 million during the quarter, compared to analyst estimates of $380.44 million. During the same quarter in the prior year, the company earned $1.05 earnings per share. The company’s quarterly revenue was down 10.6% on a year-over-year basis. Alkermes updated its FY 2026 guidance to -0.798–0.680 EPS.

Here are the key takeaways from Alkermes’ conference call:

• Alkermes reiterates strong 2026 financial guidance with total revenue expected between $1.73B–$1.84B and adjusted EBITDA of $370M–$410M, while emphasizing adjusted EBITDA as more reflective of cash flow despite a GAAP loss driven by acquisition accounting.
• The Avadel acquisition is closed and immediately expands Alkermes into sleep medicine via LUMRYZ, which generated ~$279M in 2025 and is forecast to deliver ~$350M–$370M in 2026 (Alkermes expects ~$315M–$335M contribution for the remainder of the year).
• Lead orexin program alixorexton received FDA Breakthrough Therapy designation and is planned to enter global Phase 3 (Brilliance) in narcolepsy this quarter, with three randomized studies (MWT primary) and both once‑daily and split‑dosing regimens included.
• 2026 will feature materially higher non‑cash and one‑time charges — including a ~$150M inventory step‑up to be expensed as sold, ~$50M transaction costs, and new term debt of $1.525B — contributing to an expected GAAP net loss (~$115M–$135M) and higher net interest expense.
• Alkermes is broadening its orexin pipeline beyond narcolepsy, advancing ALKS‑7290 toward Phase 2 in ADHD and ALKS‑4510 toward Phase 2 in MS/Parkinson’s fatigue this year, signaling diversification of future growth opportunities.

Alkermes Trading Down 6.8%

Shares of ALKS stock traded down $2.27 during trading hours on Wednesday, hitting $31.12. 544,576 shares of the company were exchanged, compared to its average volume of 1,940,193. Alkermes has a 52 week low of $25.17 and a 52 week high of $36.32. The business has a 50 day moving average of $31.38 and a two-hundred day moving average of $30.17. The company has a market capitalization of $5.14 billion, a PE ratio of 15.43 and a beta of 0.49.

More Alkermes News

Here are the key news stories impacting Alkermes this week:

• Positive Sentiment: Wolfe Research initiated coverage with an “outperform” rating and $45 price target — provides a bullish analyst catalyst and a sizable upside to current levels. Wolfe Research initiation
• Positive Sentiment: Board announced an orderly CEO succession: Richard Pops will retire July 31, 2026, and COO Blair Jackson will become CEO Aug. 1, 2026 — reduces leadership uncertainty and signals continuity. CEO Succession Press Release
• Neutral Sentiment: Alkermes to present at the TD Cowen Health Care Conference — visibility event for investors but not an immediate earnings driver. Conference presentation
• Neutral Sentiment: Media noted the company recently closed the Avadel acquisition ahead of these results — strategic context for revenue/growth but impact depends on integration and margins. Avadel acquisition coverage
• Neutral Sentiment: Reported short-interest data in the feed is noisy/zeroed out and not informative for near‑term squeezes (no clear signal).
• Negative Sentiment: Q4 EPS missed: Alkermes reported $0.29 EPS vs. consensus $0.43, and revenue $384.6M (slightly above estimates) with revenue down ~10.6% y/y — suggests margin pressure and weaker profitability versus expectations. Earnings press release / slides Conference call
• Negative Sentiment: Crucial FY‑2026 guidance missed expectations: Alkermes updated EPS guidance to -0.798 to -0.680 vs. consensus ~1.63 — a materially weaker profitability outlook that explains the negative market reaction despite revenue guidance near street. FY2026 guidance press release

Wall Street Analyst Weigh In

A number of equities research analysts recently commented on the company. Wall Street Zen cut Alkermes from a “strong-buy” rating to a “buy” rating in a research note on Sunday, November 9th. Truist Financial raised their target price on Alkermes from $50.00 to $55.00 and gave the stock a “buy” rating in a report on Monday, November 17th. Zacks Research cut Alkermes from a “strong-buy” rating to a “hold” rating in a research note on Thursday, February 19th. Weiss Ratings reiterated a “hold (c+)” rating on shares of Alkermes in a research report on Monday, December 29th. Finally, Deutsche Bank Aktiengesellschaft decreased their price objective on shares of Alkermes from $55.00 to $45.00 and set a “buy” rating for the company in a report on Thursday, November 13th. One analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and five have issued a Hold rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $44.00.

Insider Buying and Selling at Alkermes

In other Alkermes news, EVP Craig C. Hopkinson sold 9,000 shares of Alkermes stock in a transaction dated Monday, February 2nd. The stock was sold at an average price of $33.93, for a total value of $305,370.00. Following the sale, the executive vice president owned 57,740 shares of the company’s stock, valued at $1,959,118.20. This trade represents a 13.49% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Shane Cooke sold 61,200 shares of the business’s stock in a transaction dated Monday, February 2nd. The shares were sold at an average price of $34.57, for a total value of $2,115,684.00. Following the completion of the sale, the director owned 103,744 shares in the company, valued at approximately $3,586,430.08. This trade represents a 37.10% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 148,148 shares of company stock worth $5,028,378 over the last ninety days. 4.40% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Alkermes

A number of hedge funds and other institutional investors have recently bought and sold shares of ALKS. Johnson Financial Group Inc. bought a new stake in Alkermes in the 3rd quarter valued at approximately $31,000. UMB Bank n.a. lifted its position in shares of Alkermes by 57.6% in the fourth quarter. UMB Bank n.a. now owns 1,220 shares of the company’s stock worth $34,000 after purchasing an additional 446 shares in the last quarter. Northwestern Mutual Wealth Management Co. boosted its holdings in Alkermes by 1,041.4% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 1,324 shares of the company’s stock worth $37,000 after purchasing an additional 1,208 shares during the last quarter. Osaic Holdings Inc. boosted its holdings in Alkermes by 56.4% during the second quarter. Osaic Holdings Inc. now owns 1,945 shares of the company’s stock worth $56,000 after purchasing an additional 701 shares during the last quarter. Finally, T. Rowe Price Investment Management Inc. bought a new position in Alkermes in the fourth quarter valued at $59,000. Institutional investors and hedge funds own 95.21% of the company’s stock.

Alkermes Company Profile

Alkermes plc is a biopharmaceutical company focused on developing innovative medicines to address unmet needs in the central nervous system (CNS). The company applies its proprietary drug delivery technologies and therapeutic expertise to advance treatments for addiction, schizophrenia, bipolar I disorder and depression. Alkermes’ portfolio includes both commercial products and a pipeline of investigational therapies designed to improve patient outcomes and support long-term disease management.

Alkermes’ commercial franchise features several approved products.