Why Is BioDelivery (BDSI) Down 0.4% Since Last Earnings Report?

It has been about a month since the last earnings report for BioDelivery Sciences International (BDSI). Shares have lost about 0.4% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is BioDelivery due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

BioDelivery Q1 Earnings & Sales Beat Estimates

BioDelivery recorded earnings of 5 cents per share in first-quarter 2020, which beat the Zacks Consensus Estimate of 1 cent per share. The reported earnings include share-based compensation and certain other expenses. Excluding these items, adjusted earnings were 8 cents per share against adjusted loss of 2 cents in the year-ago quarter.

Revenues totaled $38.3 million, up 93.6% from the year-ago period and 21.2% sequentially. Sales outpaced the Zacks Consensus Estimate of $33.19 million. The uptick was mainly driven by higher sales of Belbuca and the addition of Symproic tablets to its portfolio.

Quarter in Detail

Belbuca generated revenues of $33.5 million in the quarter, up 18.4% sequentially. On a year-over-year basis, the top line soared 79%. Sales of the drug have been witnessing a strong uptrend since 2018.

Symproic sales in the first quarter were $4.2 million, up 54% sequentially.

Sales of Belbuca and Symproic were boosted by continued strong momentum as well as positive impact of stockpiling in March due to COVID-19.

Sales of Bunavail were $0.1 million in the first quarter, compared with $1.1 million in the year-ago quarter.

Product Royalty revenues in the first quarter were $0.6 million compared with $1.2 million in the year-ago period.

Operating expenses were up 57.1% year over year to$26.7 million. The increase was due to expansion of sales and other teams to support commercialization of Belbuca and Symproic.

2020 Guidance Withdrawn

BioDelivery withdrew its previously announced net sales guidance for Belbuca and total sales view for 2020 due the uncertainty surrounding the COVID-19 pandemic.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in fresh estimates. The consensus estimate has shifted 10.83% due to these changes.

VGM Scores

Currently, BioDelivery has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. 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 this revision has been net zero. Notably, BioDelivery has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

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