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Why Is Theravance Bio (TBPH) Down 17.7% Since Last Earnings Report?

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A month has gone by since the last earnings report for Theravance Biopharma (TBPH - Free Report) . Shares have lost about 17.7% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Theravance Bio due for a breakout? 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 Earnings & Revenues Miss Estimates in Q2

Theravance Biopharma incurred a loss of $1 per share in second-quarter 2020, wider than the Zacks Consensus Estimate of a loss of 95 cents and the year-ago loss of 72 cents as well.

Total revenues of $15 million in the quarter also missed the Zacks Consensus Estimate of $21 million. Revenues declined year over year too, mainly due to lower revenues from the collaboration agreement with J&J and the absence of licensing revenues.

Total revenues in the second quarter comprised collaboration revenues worth $5.5 million from Janssenand $9.5 million from the collaboration agreement with Mylan in relation to Yupelri.

Quarterly Details

Research & development expenses were $62.4 million, up 34.4% from the year-ago quarter, primarily due to higher external cost pertaining to pipeline development.

Selling, general & administrative expenses rose 11.7% to $24.8 million due to higher share-based compensation and employee-related expenses.

As of Jun 30, 2020, Theravance had cash, cash equivalents, marketable securities worth $438.3 million compared with $492.1 million as of Mar 31, 2020.

2020 Outlook

Theravance maintained its financial guidance for 2020. For the full year, the company anticipates operating loss (excluding non-cash share-based compensation) in the range of $205-$225 million.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates revision. The consensus estimate has shifted -10.67% due to these changes.

VGM Scores

At this time, Theravance Bio has a poor Growth Score of F, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the lowest 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.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. 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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