A month has gone by since the last earnings report for BioDelivery Sciences International (BDSI - Free Report) . Shares have lost about 15.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is BioDelivery due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
BioDelivery Q2 Earnings Miss, Revenues Beat
BioDelivery recorded earnings of 1 cent per share in second-quarter 2020, missing the Zacks Consensus Estimate of 4 cents per share. However, the reported earnings include share-based compensation and certain other expenses. Excluding these items, adjusted earnings were 10 cents per share compared with earnings of 5 cents in the year-ago quarter.
Revenues totaled $36.6 million, up 23.2% from the year-ago period. Sales outpaced the Zacks Consensus Estimate of $36.27 million. The uptick was mainly driven by higher sales of Belbuca and the addition of Symproic tablets to its portfolio.
However, sales were down 4.4% sequentially, primarily due to the timing of shipped orders and a tightening of wholesaler inventory for both Belbuca and Symproic.
Quarter in Detail
Belbuca generated revenues of $32.3 million in the quarter, down 3.6% sequentially. However, on a year-over-year basis, the top line soared 34%. Sales of the drug have been witnessing a strong uptrend since 2018.
Symproic sales in the second quarter were $3.4 million, up 19% sequentially and 6.3% year over year.
Belbuca and Symproic continued to gain market share. Both drugs hit an all-time high for prescription volume and market share during the second quarter.
Sales of Bunavail were $0.7 million in the second quarter compared with $0.8 million in the year-ago quarter.
Product Royalty revenues in the second quarter were $0.1 million compared with $1.5 million in the year-ago period.
Operating expenses were up 5.6% year over year to $28.2 million. The increase was primarily due to one-time cost related to the transition of the company’s chief executive officer during the quarter.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review. The consensus estimate has shifted 20% due to these changes.
At this time, BioDelivery has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, BioDelivery has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.