Madrigal Pharmaceuticals (NASDAQ:MDGL) Announces Earnings Results, Beats Estimates By $2.92 EPS

Madrigal Pharmaceuticals (NASDAQ:MDGL) announced its quarterly earnings results on Tuesday. The biopharmaceutical company reported $1.83 earnings per share for the quarter, topping analysts’ consensus estimates of ($1.09) by $2.92, Zacks reports. The firm had revenue of $431.27 million for the quarter, compared to the consensus estimate of $404.17 million. Madrigal Pharmaceuticals had a negative return on equity of 56.65% and a negative net margin of 25.32%. During the same quarter in the previous year, the business earned ($5.08) earnings per share.

Here are the key takeaways from Madrigal Pharmaceuticals’ conference call:

• REZDIFFRA sales continued to accelerate: Third-quarter net sales rose 50% year over year to $431.3 million, bringing year-to-date sales to $1.1 billion and an annualized run rate above $1.7 billion. Active patients nearly doubled year over year to more than 55,850.
• Management estimates the U.S. F2/F3 MASH market will grow by more than 30% in 2026, while diagnosis and treatment penetration remain around 10% each. The company sees substantial long-term runway, supported by REZDIFFRA’s expected patent protection through 2045.
• Madrigal expects a late-2027 readout for its 845-patient MAESTRO-NASH-OUTCOMES trial in F4C MASH, with events accruing and dropout rates tracking expectations. The company plans to initiate the larger, CSPH-enriched MAESTRO-CSPH Phase III trial in the first half of 2027, but results are not expected until the early 2030s.
• The company reported its first profitable quarter, with net income of $55.4 million and positive operating cash flow for the second consecutive quarter; cash stood at $961.8 million. Management expects to remain focused on growth and may move in and out of profitability as it funds commercial expansion, F4C trials, and pipeline programs.
• Madrigal plans to initiate three Phase II combination trials in 2027 involving resmetirom with a DGAT2 inhibitor, an oral GLP-1 agonist, and a PNPLA3-targeting siRNA. The company says its broader pipeline now includes more than 10 resmetirom combination programs.

Madrigal Pharmaceuticals Stock Performance

MDGL traded down $40.86 on Wednesday, reaching $355.46. The company had a trading volume of 362,251 shares, compared to its average volume of 336,985. Madrigal Pharmaceuticals has a fifty-two week low of $367.02 and a fifty-two week high of $615.00. The stock has a market cap of $8.21 billion, a P/E ratio of -27.58 and a beta of -0.98. The company’s fifty day moving average is $494.64 and its 200 day moving average is $498.92. The company has a debt-to-equity ratio of 0.65, a quick ratio of 2.94 and a current ratio of 3.20.

Insider Activity

In other news, CEO William Sibold sold 6,362 shares of the business’s stock in a transaction that occurred on Wednesday, September 9th. The stock was sold at an average price of $535.59, for a total transaction of $3,407,423.58. Following the completion of the sale, the chief executive officer owned 202,967 shares in the company, valued at $108,707,095.53. The trade was a 3.04% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, General Counsel Shannon T. Kelley sold 664 shares of the company’s stock in a transaction that occurred on Monday, August 17th. The shares were sold at an average price of $514.97, for a total value of $341,940.08. Following the completion of the transaction, the general counsel directly owned 11,474 shares in the company, valued at $5,908,765.78. The trade was a 5.47% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders sold 12,247 shares of company stock worth $6,581,182. Insiders own 17.60% of the company’s stock.

Key Madrigal Pharmaceuticals News

Here are the key news stories impacting Madrigal Pharmaceuticals this week:

• Positive Sentiment: Rezdiffra sales surpassed $1 billion and rose 50%, helping Madrigal swing to a quarterly profit. MDGL reported earnings of $1.83 per share versus analyst expectations for a $1.09 loss, while revenue of $431.27 million also beat estimates of $404.17 million. Madrigal Swings To Q3 Profit As Rezdiffra Sales Jump 50%
• Positive Sentiment: Citigroup raised its price target from $725 to $760 and maintained a Buy rating, signaling substantial upside in the analyst’s view. MDGL Stock Hits Fresh 52-Week Low On Near-Term Profitability Concerns, But Citi Sees Over 75% Upside
• Neutral Sentiment: Madrigal expects a late-2027 readout from its MAESTRO-NASH outcomes study and plans a separate MAESTRO-CSPH study involving more than 2,000 patients. These programs may broaden the company’s longer-term opportunity, but key results remain years away. Madrigal anticipates late 2027 MAESTRO-NASH OUTCOMES readout while planning 2,000+ patient MAESTRO-CSPH study
• Negative Sentiment: Despite the earnings and sales beat, MDGL hit a fresh 52-week low amid near-term profitability concerns. The market’s weak reaction suggests investors may be weighing whether strong Rezdiffra sales can translate into durable profitability. MDGL Stock Hits Fresh 52-Week Low On Near-Term Profitability Concerns, But Citi Sees Over 75% Upside

Wall Street Analyst Weigh In

A number of research firms have recently issued reports on MDGL. Barclays cut their price objective on Madrigal Pharmaceuticals from $964.00 to $962.00 and set an “overweight” rating for the company in a research report on Monday, August 3rd. Wells Fargo & Company assumed coverage on Madrigal Pharmaceuticals in a research note on Monday, July 27th. They set an “overweight” rating and a $685.00 target price for the company. HC Wainwright reissued a “buy” rating on shares of Madrigal Pharmaceuticals in a report on Friday, July 31st. Citigroup increased their price target on Madrigal Pharmaceuticals from $725.00 to $760.00 and gave the company a “buy” rating in a research note on Tuesday. Finally, UBS Group reaffirmed a “buy” rating and set a $735.00 price target on shares of Madrigal Pharmaceuticals in a report on Wednesday, October 14th. Fourteen research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, Madrigal Pharmaceuticals currently has a consensus rating of “Moderate Buy” and an average price target of $701.53.

About Madrigal Pharmaceuticals

Madrigal Pharmaceuticals, Inc is a biopharmaceutical company focused on developing and commercializing medicines for nonalcoholic steatohepatitis, now known as metabolic dysfunction-associated steatohepatitis (MASH), and other chronic liver diseases. The company is headquartered in West Conshohocken, Pennsylvania.

Madrigal’s lead product is Rezdiffra (resmetirom), an orally administered thyroid hormone receptor beta agonist designed to target key drivers of liver disease, including hepatic fat accumulation and fibrosis.