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Emergent (EBS) Misses on Q1 Earnings, Retains 2018 View
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Emergent BioSolutions Inc. (EBS - Free Report) incurred a loss of 3 cents per share in the first quarter of 2018, significantly missing the Zacks Consensus Estimate of earnings of 30 cents. Moreover, the loss came in against the company’s reported earnings of 29 cents in the year-ago period.
Shares of Emergent were down almost 1.5% on May 3 in after-hours trading. However, the stock has outperformed the industry so far this year with a gain of 8.8% against the industry's decrease of 13.1%.
Revenues in the reported quarter inch up 0.8% from the year-ago period to $117.8 million, primarily on the back of substantially higher contract manufacturing revenues. This was however, partially offset by lower product sales and contracts plus grants revenues. Moreover, the top line missed the consensus mark of $137 million.
Quarter in Detail
Total product sales decreased 8% to $75.8 million from the year-earlier quarter, mainly owing to lower sales of Emergent’s anthrax vaccine, BioThrax and botulism antitoxin, BAT (Botulism Antitoxin Heptavalent). However, this was partially offset by an increase in sales of other product like raxibacumab (anthrax monoclonal antibody) and ACAM2000 (smallpox vaccine).
Notably, raxibacumab and ACAM2000 were acquired by Emergent from GlaxoSmithkline (GSK - Free Report) and Sanofi (SNY - Free Report) , respectively, in the fourth quarter of 2017.
Contracts, grants and collaboration revenues declined 8% year over year to $15.9 million, primarily due to decrease in revenues following the completion of multiple contracts with the U.S. government as well as reduction in the R&D activities, related to certain ongoing funded development programs.
On the flip side, contract manufacturing revenues soared 48% to $26.1 million compared with the year-ago figure. This upside was primarily owing to the completion of a milestone payment regarding the expansion of specific contract manufacturing capabilities at Emergent’s Lansing site.
Research and development expenses were $29.1 million, up 42% from the comparable quarter last year. This rise is attributable to higher contract development services performed for next-generation anthrax vaccine, NuThrax as well as cost associated with technology transfer for manufacturing raxibacumab at the company’s Bayview manufacturing site in Baltimore.
Selling, general and administrative expenses also increased 14.2% to $40.2 million due to higher compensation expense and professional services fees.
2018 Outlook
Emergent maintained its previously issued revenue guidance in the range of $715-$755 million in 2018. The Zacks Consensus Estimate for current-year top line is pegged at $733.61 million.
The company continues to expect adjusted net income between $110 million and $125 million.
Second-Quarter 2018 Outlook
The company anticipates total revenues between $205 million and $230 million in the second quarter of 2018. The Zacks Consensus Estimate is pegged at $172 million during the same period.
Other Updates
In April, Emergent announced successful completion of the Mutual Recognition Procedure for market authorization of its anthrax vaccine, BioThrax across five Concerned Member States within the European Union including Italy, the Netherlands, Poland, the U.K. and France.
Meanwhile, in February, Emergent was awarded a contract by the Centers for Disease Control and Prevention valued at $26 million over a 12-month period for the continued supply of Vaccinia Immune Globulin Intravenous into the U.S. Strategic National Stockpile for the treatment of complications due to smallpox vaccination.
Additionally, in January, Emergent initiated a phase II dose ranging study to evaluate the safety, pharmacokinetics and clinical benefit of the company’s pipeline candidate, FLU-IGIV, developed as an intravenous treatment for serious illness caused by influenza A infection in hospitalized patients. The phase II study will enroll approximately 75 adult patients at up to 50 sites within the United States.
Emergent Biosolutions Inc. Price, Consensus and EPS Surprise
Ligand’s earnings per share estimates have moved north from $4.20 to $4.43 for 2018 in the last 30 days. The company delivered a positive surprise in three of the trailing four quarters with an average beat of 24.88%. Share price of the company has surged 36.9% over a year.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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Emergent (EBS) Misses on Q1 Earnings, Retains 2018 View
Emergent BioSolutions Inc. (EBS - Free Report) incurred a loss of 3 cents per share in the first quarter of 2018, significantly missing the Zacks Consensus Estimate of earnings of 30 cents. Moreover, the loss came in against the company’s reported earnings of 29 cents in the year-ago period.
Shares of Emergent were down almost 1.5% on May 3 in after-hours trading. However, the stock has outperformed the industry so far this year with a gain of 8.8% against the industry's decrease of 13.1%.
Revenues in the reported quarter inch up 0.8% from the year-ago period to $117.8 million, primarily on the back of substantially higher contract manufacturing revenues. This was however, partially offset by lower product sales and contracts plus grants revenues. Moreover, the top line missed the consensus mark of $137 million.
Quarter in Detail
Total product sales decreased 8% to $75.8 million from the year-earlier quarter, mainly owing to lower sales of Emergent’s anthrax vaccine, BioThrax and botulism antitoxin, BAT (Botulism Antitoxin Heptavalent). However, this was partially offset by an increase in sales of other product like raxibacumab (anthrax monoclonal antibody) and ACAM2000 (smallpox vaccine).
Notably, raxibacumab and ACAM2000 were acquired by Emergent from GlaxoSmithkline (GSK - Free Report) and Sanofi (SNY - Free Report) , respectively, in the fourth quarter of 2017.
Contracts, grants and collaboration revenues declined 8% year over year to $15.9 million, primarily due to decrease in revenues following the completion of multiple contracts with the U.S. government as well as reduction in the R&D activities, related to certain ongoing funded development programs.
On the flip side, contract manufacturing revenues soared 48% to $26.1 million compared with the year-ago figure. This upside was primarily owing to the completion of a milestone payment regarding the expansion of specific contract manufacturing capabilities at Emergent’s Lansing site.
Research and development expenses were $29.1 million, up 42% from the comparable quarter last year. This rise is attributable to higher contract development services performed for next-generation anthrax vaccine, NuThrax as well as cost associated with technology transfer for manufacturing raxibacumab at the company’s Bayview manufacturing site in Baltimore.
Selling, general and administrative expenses also increased 14.2% to $40.2 million due to higher compensation expense and professional services fees.
2018 Outlook
Emergent maintained its previously issued revenue guidance in the range of $715-$755 million in 2018. The Zacks Consensus Estimate for current-year top line is pegged at $733.61 million.
The company continues to expect adjusted net income between $110 million and $125 million.
Second-Quarter 2018 Outlook
The company anticipates total revenues between $205 million and $230 million in the second quarter of 2018. The Zacks Consensus Estimate is pegged at $172 million during the same period.
Other Updates
In April, Emergent announced successful completion of the Mutual Recognition Procedure for market authorization of its anthrax vaccine, BioThrax across five Concerned Member States within the European Union including Italy, the Netherlands, Poland, the U.K. and France.
Meanwhile, in February, Emergent was awarded a contract by the Centers for Disease Control and Prevention valued at $26 million over a 12-month period for the continued supply of Vaccinia Immune Globulin Intravenous into the U.S. Strategic National Stockpile for the treatment of complications due to smallpox vaccination.
Additionally, in January, Emergent initiated a phase II dose ranging study to evaluate the safety, pharmacokinetics and clinical benefit of the company’s pipeline candidate, FLU-IGIV, developed as an intravenous treatment for serious illness caused by influenza A infection in hospitalized patients. The phase II study will enroll approximately 75 adult patients at up to 50 sites within the United States.
Emergent Biosolutions Inc. Price, Consensus and EPS Surprise
Emergent Biosolutions Inc. Price, Consensus and EPS Surprise | Emergent Biosolutions Inc. Quote
Zacks Rank & Key Picks
Emergent carries a Zacks Rank #3 (Hold). A better-ranked stock in the health care sector is Ligand Pharmaceuticals Incorporated (LGND - Free Report) , sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Ligand’s earnings per share estimates have moved north from $4.20 to $4.43 for 2018 in the last 30 days. The company delivered a positive surprise in three of the trailing four quarters with an average beat of 24.88%. Share price of the company has surged 36.9% over a year.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>