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Emergent Down on '17 View, Posts Preliminary '16 Results
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Emergent BioSolutions Inc. (EBS - Free Report) provided preliminary results for 2016 and its guidance for 2017. Preliminary results for 2016 exceed management’s guidance provided in Dec 2016. However, shares of the company fell 7.6% as its 2017 outlook fell short of market expectations.
Shares of the company have outperformed the Zacks classified Medical-Biomedical and Genetics industry in the past year. Specifically, the stock gained 15.5% during this period, while the industry registered a decline of 12.8%.
2016 Preliminary Results
Emergent provided its guidance on both a combined and a continuing operations basis. The combined basis reflects the company’s operations which includes results of the former biosciences business that was spun off as Aptevo Therapeutics (APVO - Free Report) in Aug 2016. The continuing operations basis, on the other hand, excludes Aptevo’s performance.
On a combined basis, the company expects total revenue in the range of $500–$505 million in 2016, the midpoint representing a decline of $20 million from the 2015 level. The decline is mainly due to a decrease in BioThrax sales to about $237 million from $294 million and the impact of seven months of Aptevo-related revenues in 2016 compared with full-year operations in 2015. This was, however, offset by increases in Other Biodefense product sales, and Contract & Grant revenues.
Emergent expects total revenue in the range of $480–$485 million in 2016 on a continuing operations basis.
The guided range lies above the Zacks Consensus Estimate of $474.5 million.
Note that in Dec 2016, Emergent had guided full-year revenues in the range of $485 million to $505 million on a combined basis and in the range of $465 million to $485 on a continuing operations basis. The company had projected BioThrax sales of $220–$235 million.
Meanwhile, the company anticipates year-end cash and cash equivalents of approximately $270 million.
2017 Outlook
Emergent expects revenues in the range of $500 million to $530 million, including BioThrax sales of $265–$280 million. The guided range, however, fell short of the Zacks Consensus Estimate of 534.8 million.
In the first quarter of 2017, the company anticipates total revenue in the range of $120–$135 million.
The 2017 outlook includes the impact of continued deliveries of BioThrax to the Strategic National Stockpile (SNS) under the five-year follow-on procurement contract that was signed with the Centers for Disease Control and Prevention in Dec 2016; anticipated deliveries to the SNS under the Biomedical Advanced Research and Development Authority notice of intent to procure approximately $100 million of BioThrax; as well as the timing of sales of certain Other Biodefense products among other factors.
Emergent currently carries a Zacks Rank #3 (Hold). A couple of better-ranked stocks in this industry are Kite Pharma, Inc. and Epizyme, Inc. . Both the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Kite’s loss estimates narrowed 2.1% and 0.2% for 2016 and 2017, respectively, over the last 60 days. The company posted a positive surprise twice in the four trailing quarters with an average beat of 7.89%.
Epizyme’s loss estimates narrowed 3% and 2.4% for 2016 and 2017, respectively, over the last 60 days. The company posted a positive surprise in each of the four trailing quarters, with an average beat of 14.03%. Its share price gained approximately 17% in the past one year.
Zacks' Top 10 Stocks for 2017
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Emergent Down on '17 View, Posts Preliminary '16 Results
Emergent BioSolutions Inc. (EBS - Free Report) provided preliminary results for 2016 and its guidance for 2017. Preliminary results for 2016 exceed management’s guidance provided in Dec 2016. However, shares of the company fell 7.6% as its 2017 outlook fell short of market expectations.
Shares of the company have outperformed the Zacks classified Medical-Biomedical and Genetics industry in the past year. Specifically, the stock gained 15.5% during this period, while the industry registered a decline of 12.8%.
2016 Preliminary Results
Emergent provided its guidance on both a combined and a continuing operations basis. The combined basis reflects the company’s operations which includes results of the former biosciences business that was spun off as Aptevo Therapeutics (APVO - Free Report) in Aug 2016. The continuing operations basis, on the other hand, excludes Aptevo’s performance.
On a combined basis, the company expects total revenue in the range of $500–$505 million in 2016, the midpoint representing a decline of $20 million from the 2015 level. The decline is mainly due to a decrease in BioThrax sales to about $237 million from $294 million and the impact of seven months of Aptevo-related revenues in 2016 compared with full-year operations in 2015. This was, however, offset by increases in Other Biodefense product sales, and Contract & Grant revenues.
Emergent expects total revenue in the range of $480–$485 million in 2016 on a continuing operations basis.
The guided range lies above the Zacks Consensus Estimate of $474.5 million.
Note that in Dec 2016, Emergent had guided full-year revenues in the range of $485 million to $505 million on a combined basis and in the range of $465 million to $485 on a continuing operations basis. The company had projected BioThrax sales of $220–$235 million.
Meanwhile, the company anticipates year-end cash and cash equivalents of approximately $270 million.
2017 Outlook
Emergent expects revenues in the range of $500 million to $530 million, including BioThrax sales of $265–$280 million. The guided range, however, fell short of the Zacks Consensus Estimate of 534.8 million.
In the first quarter of 2017, the company anticipates total revenue in the range of $120–$135 million.
The 2017 outlook includes the impact of continued deliveries of BioThrax to the Strategic National Stockpile (SNS) under the five-year follow-on procurement contract that was signed with the Centers for Disease Control and Prevention in Dec 2016; anticipated deliveries to the SNS under the Biomedical Advanced Research and Development Authority notice of intent to procure approximately $100 million of BioThrax; as well as the timing of sales of certain Other Biodefense products among other factors.
Emergent Biosolutions, Inc. Price and Consensus
Emergent Biosolutions, Inc. Price and Consensus | Emergent Biosolutions, Inc. Quote
Zacks Rank & Stocks to Consider
Emergent currently carries a Zacks Rank #3 (Hold). A couple of better-ranked stocks in this industry are Kite Pharma, Inc. and Epizyme, Inc. . Both the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Kite’s loss estimates narrowed 2.1% and 0.2% for 2016 and 2017, respectively, over the last 60 days. The company posted a positive surprise twice in the four trailing quarters with an average beat of 7.89%.
Epizyme’s loss estimates narrowed 3% and 2.4% for 2016 and 2017, respectively, over the last 60 days. The company posted a positive surprise in each of the four trailing quarters, with an average beat of 14.03%. Its share price gained approximately 17% in the past one year.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>