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.
Why Is Emergent Biosolutions (EBS) Down 22.3% Since Last Earnings Report?
Read MoreHide Full Article
A month has gone by since the last earnings report for Emergent Biosolutions (EBS - Free Report) . Shares have lost about 22.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Emergent Biosolutions 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 catalysts.
Emergent Beats on Q4 Earnings, Misses on Revenues
Emergent reported fourth-quarter 2020 earnings of $3.67 per share, which comprehensively beat the Zacks Consensus Estimate of $2.72 and also improved from the year-ago quarter’s earnings of $1.57.
Revenues in the reported quarter were $583 million, up 62% from the prior-year period, primarily owing to an increase in contract development and manufacturing (“CDMO”) services revenues. However, the top line missed the Zacks Consensus Estimate of $588 million.
Quarter in Detail
Total product sales increased 10% to $340.9 million from the year-earlier quarter primarily due to increased sales of smallpox vaccine ACAM2000.
ACAM2000, generated sales of $129.3 million, reflecting an increase of 65% year over year, as the timing delay which occurred during the third quarter of 2020 was resolved in the fourth quarter. The company continued deliveries of ACAM2000 to the United States Strategic National Stockpile in the reported quarter.
Narcan nasal spray added $77.4 million to product sales, reflecting an increase of 16% year over year.
Sales of anthrax vaccines (BioThrax and AV7909) were $115.7 million in the reported quarter, increasing 25% year over year. However, other product sales plunged 74% on a year-over-year basis to $18.5 million due to a decline in sales of raxibacumab, VIGIV and the travel health vaccines.
Revenues from contracts and grants increased 78% year over year to $43 million. Contract manufacturing revenues jumped to $199.1 million, compared with $25.5 million reported in the year-ago period.
The company recorded adjusted EBITDA of $290.9 million in the reported quarter compared with $134.3 million in the year-ago period, up 116.6%.
2021 Guidance
Emergent predicts revenues of $1.95-$2.05 billion for 2021.Emergent anticipates adjusted net income within $475-$525 million, while adjusted EBITDA is anticipated in the range of $750-$810 million.
In 2021, Emergent forecasts aggregate product revenues and services revenues from the CDMO business to be in the range of $925-$965 million.
The company expects sales of Narcan nasal spray in the bracket of $305-$325 million. Sales of ACAM2000 are expected in the band of $185-$205 million while sales of anthrax vaccines are expected in the range of $280-$310 million.
For the first quarter of 2021, the company expects total revenues of $330-$370 million.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why Is Emergent Biosolutions (EBS) Down 22.3% Since Last Earnings Report?
A month has gone by since the last earnings report for Emergent Biosolutions (EBS - Free Report) . Shares have lost about 22.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Emergent Biosolutions 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 catalysts.
Emergent Beats on Q4 Earnings, Misses on Revenues
Emergent reported fourth-quarter 2020 earnings of $3.67 per share, which comprehensively beat the Zacks Consensus Estimate of $2.72 and also improved from the year-ago quarter’s earnings of $1.57.
Revenues in the reported quarter were $583 million, up 62% from the prior-year period, primarily owing to an increase in contract development and manufacturing (“CDMO”) services revenues. However, the top line missed the Zacks Consensus Estimate of $588 million.
Quarter in Detail
Total product sales increased 10% to $340.9 million from the year-earlier quarter primarily due to increased sales of smallpox vaccine ACAM2000.
ACAM2000, generated sales of $129.3 million, reflecting an increase of 65% year over year, as the timing delay which occurred during the third quarter of 2020 was resolved in the fourth quarter. The company continued deliveries of ACAM2000 to the United States Strategic National Stockpile in the reported quarter.
Narcan nasal spray added $77.4 million to product sales, reflecting an increase of 16% year over year.
Sales of anthrax vaccines (BioThrax and AV7909) were $115.7 million in the reported quarter, increasing 25% year over year. However, other product sales plunged 74% on a year-over-year basis to $18.5 million due to a decline in sales of raxibacumab, VIGIV and the travel health vaccines.
Revenues from contracts and grants increased 78% year over year to $43 million. Contract manufacturing revenues jumped to $199.1 million, compared with $25.5 million reported in the year-ago period.
The company recorded adjusted EBITDA of $290.9 million in the reported quarter compared with $134.3 million in the year-ago period, up 116.6%.
2021 Guidance
Emergent predicts revenues of $1.95-$2.05 billion for 2021.Emergent anticipates adjusted net income within $475-$525 million, while adjusted EBITDA is anticipated in the range of $750-$810 million.
In 2021, Emergent forecasts aggregate product revenues and services revenues from the CDMO business to be in the range of $925-$965 million.
The company expects sales of Narcan nasal spray in the bracket of $305-$325 million. Sales of ACAM2000 are expected in the band of $185-$205 million while sales of anthrax vaccines are expected in the range of $280-$310 million.
For the first quarter of 2021, the company expects total revenues of $330-$370 million.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.