Yahoo Finance Why Is Theravance Bio (TBPH) Up 1.6% Since Last Earnings Report?
A month has gone by since the last earnings report for Theravance Biopharma (TBPH). Shares have added about 1.6% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Theravance Bio due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Theravance Q3 Loss Narrower Than Expected, Sales Miss
Theravance reported third-quarter 2022 net loss of 21 cents per share, narrower than the year-ago period’s loss of 76 cents. The loss was also narrower than the Zacks Consensus Estimate of 22 cents as well as our estimate of 23 cents.
Total revenues of $12.5 million missed the Zacks Consensus Estimate of $19.4 million as well as our estimate of $19.2 million. Revenues declined 5.6% year over year due to the recognition of non-cash collaboration revenues from J&J’s subsidiary, Janssen, in the third quarter of 2021.
Quarter in Detail
The top line almost fully comprised Viatris collaboration revenues worth $12.4 million in relation to Yupelri (revefenacin).
Research & development expenses were $9.9 million, down 77.4% from the year-ago quarter’s figure.
Selling, general & administrative expenses were down 23.6% year over year to $16.3 million.
As of Sep 30, 2022, Theravance had cash, cash equivalents and marketable securities worth $486.8 million compared with $132.9 million as of Jun 30, 2022.
2022 Guidance
Theravance reiterated its financial guidance for 2022. TBPH expects adjusted research & development expenses (excluding one-time restructuring expenses, legal expenses and share-based compensation) in the range of $45-$55 million, while adjusted selling, general and administrative expenses are projected between $35 million and $45 million.
TBPH expects to approach breakeven cash flow from operations in 2022.
Capital Return Program
On September 20, 2022, Theravance purchased all of GSK's equity stake in the company, consisting of approximately 9.6 million shares at $9.75 per share.
On September 28, Theracance also announced a Dutch auction tender offer for up to $95 million of its ordinary shares.
The company intends to enter into an Open Market Share Repurchase Plan to facilitate the repurchase of approximately $60 million of its ordinary shares in open market purchases subsequent to the completion of the Dutch auction tender offer, with a goal to complete this program by the end of 2023.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates flatlined during the past month.
The consensus estimate has shifted 12.5% due to these changes.
VGM Scores
At this time, Theravance Bio has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Theravance Bio 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
Theravance Bio belongs to the Zacks Medical - Drugs industry. Another stock from the same industry, Catalent (CTLT), has gained 12.6% over the past month. More than a month has passed since the company reported results for the quarter ended September 2022.
Catalent reported revenues of $1.02 billion in the last reported quarter, representing a year-over-year change of -0.3%. EPS of $0.34 for the same period compares with $0.71 a year ago.
Catalent is expected to post earnings of $0.71 per share for the current quarter, representing a year-over-year change of -21.1%. Over the last 30 days, the Zacks Consensus Estimate has changed +1.1%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #5 (Strong Sell) for Catalent. Also, the stock has a VGM Score of C.
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Theravance Biopharma, Inc. (TBPH) : Free Stock Analysis Report
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