It has been about a month since the last earnings report for Pacira (PCRX). Shares have added about 6.9% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Pacira due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers.
Pacira Q2 Earnings & Revenues Beat, 2026 Sales Outlook Cut
Pacira reported second-quarter 2026 adjusted earnings of 73 cents per share, beating the Zacks Consensus Estimate of 64 cents. In the year-ago quarter, the company had reported adjusted earnings of 74 cents per share.
Second-quarter revenues of $192.4 million increased 6.2% from the year-ago quarter and beat the Zacks Consensus Estimate of $190 million. Top-line growth was supported by momentum across the commercial portfolio, highlighted by continued demand for Exparel and incremental revenues from Zilretta and iovera sales. Exparel volume growth was 4% in the quarter.
PCRX Q2 Product Sales Rise Across the Portfolio
Total product sales reached $190.5 million in the quarter, increasing 5.7% on a year-over-year basis. Exparel remained the largest contributor, with net product sales rising 3% year over year to $147.8 million. Exparel's volume growth was partly offset by an unfavorable vial mix and discounting tied to the company's group purchasing organization contract.
Zilretta net product sales increased 4% year over year to $32.6 million in the reported quarter. Management attributed the improvement to commercial initiatives launched last year, including a dedicated sales force and the company's partnership with Johnson & Johnson.
Second-quarter iovera net product sales climbed 22% year over year to $6.8 million. Sales of bupivacaine liposome injectable suspension to third-party licensees came in at $3.2 million during the second quarter compared with $0.5 million in the year-ago period.
Meanwhile, royalty revenues increased to $1.9 million in the second quarter from $0.8 million in the year-ago period.
Adjusted research and development (R&D) expenses rose 9.7% year over year to $27.1 million, mainly due to the advancing phase II study of PCRX-201 and label-expansion programs. Adjusted selling, general and administrative (SG&A) expenses increased 5.3% year over year to $81.3 million, partly due to nonrecurring costs related to the contested director election.
Pacira ended the quarter with $251 million in cash, cash equivalents and available-for-sale investments compared with $202.2 million as of March 31, 2026.
Pacira Updates Guidance After iovera Divestiture
Following the July 31 closing of the iovera divestiture to Zimmer Biomet, Pacira lowered its 2026 total revenue guidance from $745-$770 million to $735-$760 million. The revised range includes iovera sales only through the transaction closing date.
The company also reduced its adjusted SG&A expense forecast to $310-$330 million from $320-$340 million. The adjusted R&D expenses guidance remained unchanged in the range of $105-$115 million. Stock-based compensation guidance was tightened from $54-$62 million to $54-$59 million.
Pacira maintained its 2026 Exparel net product sales outlook of $600-$620 million. Management said the second half assumes continued macroeconomic softness, with growth expected from outpatient settings and procedures viewed as more resilient to economic pressure.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
VGM Scores
Currently, Pacira has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, the stock has a grade of A on the value side, putting it in the top quintile for value investors.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Pacira has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Pacira belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Astrazeneca (AZN), has gained 0.1% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.
Astrazeneca reported revenues of $15.38 billion in the last reported quarter, representing a year-over-year change of +6.4%. EPS of $2.63 for the same period compares with $2.18 a year ago.
Astrazeneca is expected to post earnings of $2.60 per share for the current quarter, representing a year-over-year change of +9.2%. Over the last 30 days, the Zacks Consensus Estimate has changed -1.3%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Astrazeneca. Also, the stock has a VGM Score of C.
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This article originally published on Zacks Investment Research (zacks.com).
