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Why Is Theravance Bio (TBPH) Down 36.5% 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 36.5% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is 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 its most recent earnings report in order to get a better handle on the important drivers.

Theravance Q2 Earnings Beat, Revenues Lag Estimates

Theravance incurred a loss of 80 cents per share in the second quarter of 2021, narrower than the Zacks Consensus Estimate of a loss of 96 cents and the year-ago loss of $1.00.    

Total revenues of $12.9 million in the quarter missed the Zacks Consensus Estimate of $15.02 million. Revenues were down 14% year over year.

Total revenues comprised collaboration revenues worth $2 million from Janssen and $10.9 million from the collaboration agreement with Viatris in relation to Yupelri.

Quarter in Detail

Research & development expenses were $51.1 million, down 18.1% from the year-ago quarter.

Selling, general & administrative expenses were up 4.6% year over year to $25.9 million.

As of Jun 30, 2021, Theravance had cash, cash equivalents and marketable securities worth $265 million compared with $210 million as of Mar 31, 2021.

2021 Guidance Maintained

Theravance maintained its guidance for operating expenses in 2021. It expects R&D expense to be in the range of $195-$225 million and SG&A expense between $80 million and $90 million.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed an upward trend in estimates revision. The consensus estimate has shifted -5.62% due to these changes.

VGM Scores

Currently, Theravance Bio has an average Growth Score of C, however its Momentum Score is doing a lot better with an A. However, 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 D. 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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