We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
BioScrip (BIOS) Q1 Loss Narrower than Expected, Sales Miss
Read MoreHide Full Article
BioScrip, Inc. reported net loss from continuing operations of $19.4 million or a loss of 18 cents per share in the first quarter of 2017, compared to net loss of $9.5 million or a loss of 17 cents a year ago. The Zacks Consensus Estimate was a loss of 12 cents.
Revenues
With the completion of the company’s non-core PBM business divestment (treated as discontinued operation in the previous quarter), BioScrip currently has a simplified business structure focused on core Infusion Services.
Revenues from continuing operations in the first quarter fell 8.6% year over year to $217.8 million and also missed the Zacks Consensus Estimate of $229.4 million. The year-over-year decline was due to the company’s previously announced shift in strategy to focus on growing its core revenue mix coupled with the impact of the Cures Act. This was partially offset by the accretive impact of Home Solutions acquisition.
Gross profit during the first quarter was $65.5 million, up 2.1% year over year. Gross margin also expanded 317 basis points (bps) to 30.1%. Adjusted operating income was $56.1 million, marking a 5.5% rise year over year on a 14.2% fall in adjusted operating expenses to $9.5 million. Adjusted operating margin expanded 346 bps year over year to 25.7%.
Financials
BioScrip exited first-quarter 2017 with cash and cash equivalents of $15.9 million, significantly up from $9.5 million at the end of fiscal 2016.
2017 Guidance Intact
BioScrip reiterated its prior guidance for adjusted EBITDA at the range of $45.0 million to $55.0 million for full-year 2017. This guidance incorporates the estimated adverse effect of the Cures Act legislation and the company's estimates regarding its contract with UnitedHealthcare. Management continues to evaluate the impact of the UnitedHealthcare contract on its 2017 revenues and will provide an updated 2017 revenue guidance.
Our Take
The year-over-year drop in revenues in the first quarter was partly due to lower-than-expected core sales volumes. The company’s incurred bottom line loss was also disappointing. Management’s 2017 guidance, which includes the negative impact of Cures Act legislation, also adds to our concerns.
Nonetheless, we are encouraged by the company’s progress in the first quarter, courtesy of its new multi-faceted CORE plan which was adopted to improve its financial position. Further, the company successfully completed the Home Solutions’ integration within the first quarter.The company expects core revenues at Home Solutions and continued core growth to prove accretive going forward.
Zacks Rank &Key Picks
BioScrip currently has a Zacks Rank #3 (Hold). Better-ranked medical stocks include Hologic, Inc. (HOLX - Free Report) , Baxter International Inc. (BAX - Free Report) and Progenics Pharmaceuticals, Inc. . Hologic sports a Zacks Rank 1 (Strong Buy), while Baxter International and Progenics Pharmaceuticals carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Hologic gained 33.8% in the last one year, in comparison to the S&P 500’s 16.0%. The company has a stellar four-quarter average earnings surprise of over 4.16%.
Baxter International rose around 24.2% in the last one year, in comparison to the S&P 500. It has a four-quarter average earnings surprise of 17.14%.
Progenics Pharmaceuticals gained 34.9% in the past one year, better than the S&P 500 mark. It has a four-quarter average earnings surprise of 8.45%.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
BioScrip (BIOS) Q1 Loss Narrower than Expected, Sales Miss
BioScrip, Inc. reported net loss from continuing operations of $19.4 million or a loss of 18 cents per share in the first quarter of 2017, compared to net loss of $9.5 million or a loss of 17 cents a year ago. The Zacks Consensus Estimate was a loss of 12 cents.
Revenues
With the completion of the company’s non-core PBM business divestment (treated as discontinued operation in the previous quarter), BioScrip currently has a simplified business structure focused on core Infusion Services.
Revenues from continuing operations in the first quarter fell 8.6% year over year to $217.8 million and also missed the Zacks Consensus Estimate of $229.4 million. The year-over-year decline was due to the company’s previously announced shift in strategy to focus on growing its core revenue mix coupled with the impact of the Cures Act. This was partially offset by the accretive impact of Home Solutions acquisition.
BioScrip, Inc. Price, Consensus and EPS Surprise
BioScrip, Inc. Price, Consensus and EPS Surprise | BioScrip, Inc. Quote
Gross profit during the first quarter was $65.5 million, up 2.1% year over year. Gross margin also expanded 317 basis points (bps) to 30.1%. Adjusted operating income was $56.1 million, marking a 5.5% rise year over year on a 14.2% fall in adjusted operating expenses to $9.5 million. Adjusted operating margin expanded 346 bps year over year to 25.7%.
Financials
BioScrip exited first-quarter 2017 with cash and cash equivalents of $15.9 million, significantly up from $9.5 million at the end of fiscal 2016.
2017 Guidance Intact
BioScrip reiterated its prior guidance for adjusted EBITDA at the range of $45.0 million to $55.0 million for full-year 2017. This guidance incorporates the estimated adverse effect of the Cures Act legislation and the company's estimates regarding its contract with UnitedHealthcare. Management continues to evaluate the impact of the UnitedHealthcare contract on its 2017 revenues and will provide an updated 2017 revenue guidance.
Our Take
The year-over-year drop in revenues in the first quarter was partly due to lower-than-expected core sales volumes. The company’s incurred bottom line loss was also disappointing. Management’s 2017 guidance, which includes the negative impact of Cures Act legislation, also adds to our concerns.
Nonetheless, we are encouraged by the company’s progress in the first quarter, courtesy of its new multi-faceted CORE plan which was adopted to improve its financial position. Further, the company successfully completed the Home Solutions’ integration within the first quarter.The company expects core revenues at Home Solutions and continued core growth to prove accretive going forward.
Zacks Rank & Key Picks
BioScrip currently has a Zacks Rank #3 (Hold). Better-ranked medical stocks include Hologic, Inc. (HOLX - Free Report) , Baxter International Inc. (BAX - Free Report) and Progenics Pharmaceuticals, Inc. . Hologic sports a Zacks Rank 1 (Strong Buy), while Baxter International and Progenics Pharmaceuticals carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Hologic gained 33.8% in the last one year, in comparison to the S&P 500’s 16.0%. The company has a stellar four-quarter average earnings surprise of over 4.16%.
Baxter International rose around 24.2% in the last one year, in comparison to the S&P 500. It has a four-quarter average earnings surprise of 17.14%.
Progenics Pharmaceuticals gained 34.9% in the past one year, better than the S&P 500 mark. It has a four-quarter average earnings surprise of 8.45%.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>