the alkermes company made less money than people thought they would in the second part of the year. this is called missing the earnings estimates. the people who own shares in the company might be a little sad because the value of their shares might not go up as much as they hoped. but it is not the worst thing that could happen. the company still made more money than it did in the same part of the year last time. and if the people who are in charge of the company say some nice things after they tell everyone how much money they made, then maybe the people who own shares in the company will be happier. it's like when you play a game and you thought you would get more points, but you still had fun and learned something new. Read from source...

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AI's article focuses on Alkermes, which has missed its Q2 earnings estimates. However, the company has surpassed consensus revenue estimates three times over the last four quarters. Alkermes shares have lost about 9.9% since the beginning of the year versus the S&P 500's gain of 16.5%. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

bullish
Reason: Despite the quarterly earnings miss, the stock still has a positive outlook in the long term. Additionally, the consensus EPS estimate for the upcoming quarter is higher than the latest reported quarter, which indicates a possible positive surprise.

ALKERMES LAGS Q2 EARNINGS ESTIMATES

Investors should consider the risks and potential drawbacks associated with investing in Alkermes, particularly given the company's underperformance relative to the market and the S&P 500. Despite Alkermes exceeding consensus revenue estimates for the quarter ended June 2024, the company's earnings per share (EPS) missed the Zacks Consensus Estimate of $0.73 per share, resulting in a surprise of -1.37%. This follows a similar pattern observed in the last quarter when Alkermes was expected to post earnings of $0.59 per share but instead produced earnings of $0.44 per share, delivering a surprise of -25.42%.

While Alkermes may have beaten consensus revenue estimates for the last four quarters, missing EPS estimates can impact investor sentiment and the company's overall valuation. Furthermore, the sustainability of the stock's immediate price movement based on recently-released numbers and future earnings expectations will depend largely on management's commentary on the earnings call.

Investors should also be aware of the industry outlook, as the performance of the Biomedical and Genetics industry can have a significant impact on the stock's performance. At present, the industry's rank places it in the top 34% of the 250+ Zacks industries. Therefore, while Alkermes may face challenges in the short term, the long-term outlook for the stock and the industry could provide attractive investment opportunities for investors with a longer investment horizon.

One other stock in the same industry, Arcellx, Inc. ACLX, has yet to report results for the quarter ended June 2024. However, the company is expected to post a quarterly loss of $0.54 per share, which represents a year-over-year change of -8%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Investors should monitor Arcellx's performance, particularly given the industry's positive outlook.

Overall, investors should approach Alkermes with caution, given the company's recent underperformance and potential risks associated with investing in the stock. However, investors with a longer investment horizon may view the company's position in a positively-ranked industry and potential future growth opportunities as attractive investment considerations.