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Theravance Bio (TBPH) Up 2.6% Since Last Earnings Report: Can It Continue?

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A month has gone by since the last earnings report for Theravance Biopharma (TBPH - Free Report) . Shares have added about 2.6% 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 Biopharma Q2 Loss Narrows

Theravance Biopharma reported second-quarter 2018 loss of $0.76 per share, narrower than the Zacks Consensus Estimate of a loss of $1.24 and the year-ago loss of $1.27.

Total revenues in the quarter under review skyrocketed 475% year over year to $23 million owing to higher revenues from Vibativ as well as higher collaboration revenues. Moreover, the top line surpassed the Zacks Consensus Estimate of $10.5 million.

Quarterly Details

Vibativ generated U.S. revenues of $5.4 million in the second quarter, up 53% from the year-ago period's figure. Revenues from collaborations were $18.11 million compared with $0.035 million in the year-earlier quarter. This upside can mainly be attributed to revenues recognized with respect to the opt-in payment received from Alfasigma for velusetrag and an upfront payment from J&J for the commercialization agreement of TD-1473 to treat inflammatory diseases.

Research and development expenses were $48.6 million, up 13.3% from the year-ago period while selling, general & administrative expenses rose 2.9% to $25 million.

2018 Outlook Reiterated

Theravance continues to expect operating loss excluding non-cash share-based compensation for 2018 in the range of $180-$200 million, unchanged from the first-quarter level.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in fresh estimates.

VGM Scores

At this time, Theravance Bio has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. However, 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.

The company's stock is suitable solely for momentum based on our style scores.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of this revision looks promising. Notably, Theravance Bio has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


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