Krystal Biotech (NASDAQ:KRYS) Issues Quarterly Earnings Results

Krystal Biotech (NASDAQ:KRYS) released its quarterly earnings data on Monday. The company reported $2.05 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.79 by $0.26, FiscalAI reports. Krystal Biotech had a net margin of 47.91% and a return on equity of 17.02%. The firm had revenue of $127.34 million for the quarter, compared to the consensus estimate of $125.77 million.

Here are the key takeaways from Krystal Biotech’s conference call:

• VYJUVEK revenue rose 30% year over year to $127.3 million in the third quarter, supported by continued U.S. demand and international launches. The company ended the quarter with more than $1.2 billion in cash and investments.
• International momentum continued, with $32 million in third-quarter revenue, more than 20 German treatment centers initiating patients, and home administration beginning in France. Italy pricing negotiations are complete, with a launch expected in early 2027, while Spain discussions are progressing.
• Krystal authorized a $400 million share repurchase program to be deployed over two years, citing confidence in its outlook and sufficient resources to fund commercial expansion and pipeline development.
• Early KB113 results in Gorlin syndrome showed regression in more than 80% of assessed lesions, including non-injected lesions, with complete histological clearance in one injected lesion per patient. Management said the findings support discussions with the FDA and could enable a pivotal study involving fewer than 100 patients.
• Several clinical milestones have been pushed out: ocular DEB results are now expected after the February 2027 last-patient visit, NK enrollment and readout are expected in 2027, and CF interim data are anticipated in the first half of 2027. Gross margin also declined to 94% from 96% a year earlier, while net income and diluted EPS fell year over year, partly because the prior-year period benefited from non-recurring tax items.

Krystal Biotech Stock Up 3.1%

Shares of NASDAQ:KRYS opened at $305.03 on Wednesday. Krystal Biotech has a 52-week low of $192.52 and a 52-week high of $382.54. The stock has a market cap of $9.03 billion, a price-to-earnings ratio of 41.39 and a beta of 0.56. The business has a 50-day moving average price of $335.72 and a 200-day moving average price of $308.77.

Krystal Biotech News Roundup

Here are the key news stories impacting Krystal Biotech this week:

• Positive Sentiment: Third-quarter revenue rose about 30% to $127.34 million, and EPS of $2.05 topped analyst expectations. Vyjuvek’s performance helped drive the growth. Krystal Biotech Q3 Net Income Falls, Revenue Rises; Shares Up Pre-Bell
• Positive Sentiment: The company announced a $400 million share-repurchase program, which may support demand for the stock. Krystal outlines $400M share repurchase
• Neutral Sentiment: Citigroup, TD Cowen, and RBC trimmed their price targets but retained Buy or Outperform ratings, signaling continued optimism alongside more cautious valuation assumptions. RBC on Krystal Biotech prospects
• Negative Sentiment: Net income declined from a year earlier, and several pipeline timelines have slipped into 2027. Those factors appear to have weighed on shares despite the earnings beat and revenue growth. Krystal beats on Vyjuvek strength, but pipeline timelines slip

Analyst Upgrades and Downgrades

Several research firms have issued reports on KRYS. TD Cowen cut their target price on Krystal Biotech from $403.00 to $380.00 and set a “buy” rating on the stock in a research note on Tuesday. Zacks Research lowered shares of Krystal Biotech from a “hold” rating to a “strong sell” rating in a research note on Friday, October 23rd. Jefferies Financial Group reaffirmed a “buy” rating and issued a $474.00 price target on shares of Krystal Biotech in a report on Monday, July 13th. Royal Bank Of Canada lowered their price objective on shares of Krystal Biotech from $400.00 to $375.00 and set an “outperform” rating for the company in a research note on Tuesday. Finally, William Blair upgraded shares of Krystal Biotech to a “strong-buy” rating in a research note on Wednesday, September 23rd. Two investment analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $375.00.

Insider Transactions at Krystal Biotech

In related news, insider Suma Krishnan sold 25,000 shares of the stock in a transaction that occurred on Friday, September 4th. The shares were sold at an average price of $359.32, for a total value of $8,983,000.00. Following the transaction, the insider owned 1,302,145 shares in the company, valued at approximately $467,886,741.40. This represents a 1.88% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Dino A. Rossi sold 25,000 shares of the stock in a transaction that occurred on Friday, August 14th. The stock was sold at an average price of $329.12, for a total transaction of $8,228,000.00. Following the completion of the transaction, the director owned 50,000 shares in the company, valued at approximately $16,456,000. This trade represents a 33.33% decrease in their position. The SEC filing for this sale provides additional information. Insiders own 13.10% of the company’s stock.

Krystal Biotech Company Profile

Krystal Biotech, Inc is a biotechnology company focused on developing and commercializing genetic medicines for rare diseases. The company’s platform uses modified herpes simplex virus type 1 vectors to deliver functional genes to target tissues, with an emphasis on therapies that can be administered repeatedly.

Krystal’s lead product, VYJUVEK, is a topical gene therapy for wounds associated with dystrophic epidermolysis bullosa, a rare inherited skin disorder caused by mutations affecting type VII collagen.