Amarin Corporation (AMRN) Stock: Pops On Earnings

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Amarin Corporation plc (NASDAQ: AMRN), a company that has recently been the center of acquisition chatter, is having a strong start to the trading session in the market this morning. However, the gains are coming for an entirely different reason.

The company announced its earnings, beating expectations and exciting investors. Today, we’ll talk about:

  • The earnings;
  • recent acquisition chatter;
  • what we’re seeing from AMRN stock; and
  • what we’ll be watching for ahead.

AMRN Gains On Earnings

As mentioned above, Amarin is having an incredibly strong start to the trading session today after reporting its earnings. Here’s what we saw from the report:

  • Earnings – During the quarter, AMRN reported an adjusted loss of $0.09 per share. Unfortunately, this missed expectations of a loss of $0.05 per share.
  • Revenue – Revenue came in at $77.3 million. While that missed analyst expectations of $74.45 million, it was up 44.1% year over year.
  • Guidance – Finally, AMRN expects that Vascepa sales will reach $350 million in 2019. This figure excludes any impact from potential label expansion.

Recent Acquisition Chatter

While the earnings report was relatively mixed, investors seem to be excited about guidance. Moreover, acquisition chatter is still buzzing.

At the moment, the social space is buzzing about a potential acquisition of AMRN by the healthcare giant, Novartis. The story first broke about a week ago and has been catching steam since.

However, it’s important to remember that takeover rumors are one of the most common types of market manipulation. Without any confirmation on either side of the coin by this point, chances of this being real news are slim.

Nonetheless, we do believe that AMRN is an attractive takeover target. With projected increasing sales of Vascepa and continued work to improve the label, now may be a great time for a big player to jump on this takeover opportunity. Nonetheless, a deal is yet to be seen.

What We’re Seeing From The Stock 

One of the first lessons that we learn when we start to work in the market is that it’s important to follow the news. After all, the news moves the market. When it comes to Amarin, the news has proven to be positive.

Recent takeover rumors have gotten the investing community buzzing. Now, with positive revenue growth and strong guidance, we’re seeing further gains.

As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:03), AMRN is trading at $20.95 per share after a gain of $0.94 per share or 4.70% thus far today.

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will continue to keep a close eye on AMRN. In particular, we’re interested in following the story surrounding the company’s continued work to expand the Vascepa label and bring the treatment to more patients in need.

We’re also keeping an eye on the potential takeover of the company. While the Novartis deal may not go through, we do believe that the company is an attractive takeover target. Nonetheless, we’ll watch the news closely and bring it to you as it breaks!

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