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Theravance Bio (TBPH) Up 10.1% 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 10.1% in that time frame, outperforming 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 its most recent earnings report in order to get a better handle on the important drivers.

Theravance Q4 Earnings Top Estimates, Revenues In Line

Theravance incurred a loss of 92 cents per share in the fourth quarter, narrower than the Zacks Consensus Estimate of a loss of $1.03 and the year-ago loss of $1.17.

Although total revenues of $18.7 million in the quarter were almost in line with the Zacks Consensus Estimate, the same decreased 36.5% year over year, mainly due to absence of licensing revenues in the reported quarter.

Total revenues comprised collaboration revenues worth $7.1 million from Janssen and $11.6 million from the collaboration agreement with Viatris in relation to Yupelri.

Quarter in Detail

Research & development expenses were $65.2 million, down 2.7% from the year-ago quarter.

Selling, general & administrative expenses declined 8.8% year over year to $30.1 million.

As of Dec 31, 2020, Theravance had cash, cash equivalents and marketable securities worth $292.9 million compared with $358.3 million as of Sep 30, 2020.

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 -27.22% due to these changes.

VGM Scores

Currently, 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 bottom 20% 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 upward 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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