Today’s news: Supernus Pharmaceuticals (SUPN) reports strong earnings and revenue beat; moves from Buy Low Opportunities Portfolio to Growth Portfolio.
Supernus Pharmaceuticals (SUPN) reported first-quarter earnings per share of $0.49 yesterday when the market was expecting $0.33. Revenue of $90.4 million surpassed the $80.0 million consensus estimate. The company is on a strong growth trajectory due to the successes of its two marketable prescriptions: Trokendi XR® and Oxtellar XR® that treat partial seizures and migraine.
The FDA will decide on an expanded label indication for Oxtellar XR® before year-end. Supernus is also in the midst of several Phase III drug trials, exploring potential treatments for ADHD and bipolar disorder. Phase III trial results are currently expected in the first quarter of 2019.
The stock is up 19% since joining the Buy Low Opportunities Portfolio in January. Since SUPN has essentially recovered from its price correction, which naturally followed its huge run-up in 2017, the stock has accomplished my initial goal of seeing it rebound toward 50. Since SUPN is still a very undervalued aggressive growth stock, I’m moving it to the Growth Portfolio today. The stock appears capable of rising past 50 very soon, certainly within days or weeks, unless the broader market takes an unexpected dive. Small-cap stocks are volatile, and often jump or fall without any associated news stories to shed light on the price activity. I encourage risk-tolerant growth stock investors to buy more SUPN now before the next run-up begins. Strong Buy.