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Emergent (EBS) Down 16% on Q4 Earnings Miss, Tops on Sales
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Emergent BioSolutions (EBS - Free Report) reported an adjusted loss of 77 cents per share in fourth-quarter 2023, wider than the Zacks Consensus Estimate of a loss of 33 cents. In the year-ago quarter, EBS reported adjusted earnings of 11 cents per share.
Revenues in the quarter totaled $276.6 million, down 16% from the prior-year period’s level. The reported figure outpaced the Zacks Consensus Estimate of $247.6 million.
The company's shares lost almost 16% in after-market trading on Mar 6, likely due to the earnings miss.
The stock has surged 35.8% in the year-to-date period compared with the industry’s 2.8% growth.
Image Source: Zacks Investment Research
Quarter in Detail
Total product sales were down 19% from the year-ago quarter’s level to $249.1 million.
Sales of Anthrax Medical Counter measures (Anthrax MCM), comprising of Cyfendus (previously known as AV7909), BioThrax, Anthrasil and raxibacumab, totaled $111.6 million in the reported quarter, up 98% year over year. The upside can be attributed to the favorable timing of sales related to Cyfendus, Anthrasil and BioThrax.
Narcan (naloxone HCl) nasal spray added $111.0 million to product sales, up 22% year over year. This upside was driven by higher sales of the OTC version of the product.
Sales of smallpox vaccine totaled $11.5 million compared with $144.6 million in the year-ago quarter. This downside was attributed to Tembexa not having current quarter sales and the timing of VIGIV deliveries.
Other product sales amounted to $15.0 million, up 72% year over year. The increase was primarily due to higher Botulism Antitoxin Heptavalent (BAT) sales, partially offset by lower Reactive Skin Decontamination Lotion Kit (RSDL) sales.
Revenues from contracts and grants declined 6% year over year to $6.7 million.
Revenues from the Bioservices business totaled $20.8 million in the fourth quarter compared with $17.4 million in the year-ago period.
Full-Year Results
Emergent reported revenues of $1.05 billion, down 6% year over year. The company reported an adjusted loss of $6.23 per share for 2023, compared to a loss of $1.98 in the year-ago period.
2024 Guidance
Emergent has issued fresh guidance for the full year 2024.
The company expects to record total revenues in the range of $0.9-$1.1 billion. For first-quarter 2024, total revenues are expected to be between $200-$250 million.
Management expects sales of commercial products — comprising of Narcan and other commercial products — in the range of $460-$500 million. MCM products (comprising Anthrax MCM and Smallpox MCM) are expected to add $340-$490 million to total revenues. The company expects to record $70-$80 million from its Bioservices business.
Emergent also anticipates adjusted net income(loss) within $(130)-$(80) million. Adjusted EBITDA is expected to be between $50-$100 million.
Other Updates
In an SEC filing, Emergent announced that it entered into a forbearance agreement with its lenders last month. Per the terms of this agreement, the company’s lenders will not exercise rights related to specified defaults till April 30, 2024, or the happening of any event of default, whichever is earlier. The agreement has been executed with the intent to secure additional credit under set conditions.
The agreement also amended interest rates and prepayment terms and requires further collateral, including a new guarantor.
In the past 60 days, estimates for ADMA Biologics’ 2024 earnings per share (EPS) have risen from 18 cents to 30 cents. Meanwhile, during the same period, EPS estimates for 2025 have improved from 32 cents to 50 cents. Year to date, shares of ADMA have risen 35.4%.
Earnings of ADMA Biologics beat estimates in three of the last four quarters while meeting the same on one occasion. ADMA delivered a four-quarter average earnings surprise of 85.00%.
In the past 60 days, estimates for ANI Pharmaceuticals’ 2024 EPShave risen from $4.06 to $4.22. Meanwhile, during the same period, EPS estimates for 2025 have improved from $4.80 to $4.98. Year to date, shares of ANIP have risen 19.4%.
Earnings of ANI Pharmaceuticals beat estimates in each of the last four quarters. ANI delivered a four-quarter average earnings surprise of 109.06%.
In the past 60 days, estimates for GSK’s 2024 EPS have risen from $3.87 to $4.03. Meanwhile, during the same period, EPS estimates for 2025 have improved from $4.20 to $4.40. Year to date, shares of GSK have risen 15.0%.
GSK's earnings beat estimates in three of the trailing four quarters while missing the mark on one occasion. On average, GSK’s four-quarter earnings surprise was 7.59%.
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Emergent (EBS) Down 16% on Q4 Earnings Miss, Tops on Sales
Emergent BioSolutions (EBS - Free Report) reported an adjusted loss of 77 cents per share in fourth-quarter 2023, wider than the Zacks Consensus Estimate of a loss of 33 cents. In the year-ago quarter, EBS reported adjusted earnings of 11 cents per share.
Revenues in the quarter totaled $276.6 million, down 16% from the prior-year period’s level. The reported figure outpaced the Zacks Consensus Estimate of $247.6 million.
The company's shares lost almost 16% in after-market trading on Mar 6, likely due to the earnings miss.
The stock has surged 35.8% in the year-to-date period compared with the industry’s 2.8% growth.
Image Source: Zacks Investment Research
Quarter in Detail
Total product sales were down 19% from the year-ago quarter’s level to $249.1 million.
Sales of Anthrax Medical Counter measures (Anthrax MCM), comprising of Cyfendus (previously known as AV7909), BioThrax, Anthrasil and raxibacumab, totaled $111.6 million in the reported quarter, up 98% year over year. The upside can be attributed to the favorable timing of sales related to Cyfendus, Anthrasil and BioThrax.
Narcan (naloxone HCl) nasal spray added $111.0 million to product sales, up 22% year over year. This upside was driven by higher sales of the OTC version of the product.
Sales of smallpox vaccine totaled $11.5 million compared with $144.6 million in the year-ago quarter. This downside was attributed to Tembexa not having current quarter sales and the timing of VIGIV deliveries.
Other product sales amounted to $15.0 million, up 72% year over year. The increase was primarily due to higher Botulism Antitoxin Heptavalent (BAT) sales, partially offset by lower Reactive Skin Decontamination Lotion Kit (RSDL) sales.
Revenues from contracts and grants declined 6% year over year to $6.7 million.
Revenues from the Bioservices business totaled $20.8 million in the fourth quarter compared with $17.4 million in the year-ago period.
Full-Year Results
Emergent reported revenues of $1.05 billion, down 6% year over year. The company reported an adjusted loss of $6.23 per share for 2023, compared to a loss of $1.98 in the year-ago period.
2024 Guidance
Emergent has issued fresh guidance for the full year 2024.
The company expects to record total revenues in the range of $0.9-$1.1 billion. For first-quarter 2024, total revenues are expected to be between $200-$250 million.
Management expects sales of commercial products — comprising of Narcan and other commercial products — in the range of $460-$500 million. MCM products (comprising Anthrax MCM and Smallpox MCM) are expected to add $340-$490 million to total revenues. The company expects to record $70-$80 million from its Bioservices business.
Emergent also anticipates adjusted net income(loss) within $(130)-$(80) million. Adjusted EBITDA is expected to be between $50-$100 million.
Other Updates
In an SEC filing, Emergent announced that it entered into a forbearance agreement with its lenders last month. Per the terms of this agreement, the company’s lenders will not exercise rights related to specified defaults till April 30, 2024, or the happening of any event of default, whichever is earlier. The agreement has been executed with the intent to secure additional credit under set conditions.
The agreement also amended interest rates and prepayment terms and requires further collateral, including a new guarantor.
Emergent Biosolutions Inc. Price
Emergent Biosolutions Inc. price | Emergent Biosolutions Inc. Quote
Zacks Rank & Key Picks
Currently, Emergent has a Zacks Rank #3 (Hold). Some better-ranked stocks in the overall healthcare sector include ADMA Biologics (ADMA - Free Report) , ANI Pharmaceuticals (ANIP - Free Report) and GSK plc (GSK - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, estimates for ADMA Biologics’ 2024 earnings per share (EPS) have risen from 18 cents to 30 cents. Meanwhile, during the same period, EPS estimates for 2025 have improved from 32 cents to 50 cents. Year to date, shares of ADMA have risen 35.4%.
Earnings of ADMA Biologics beat estimates in three of the last four quarters while meeting the same on one occasion. ADMA delivered a four-quarter average earnings surprise of 85.00%.
In the past 60 days, estimates for ANI Pharmaceuticals’ 2024 EPShave risen from $4.06 to $4.22. Meanwhile, during the same period, EPS estimates for 2025 have improved from $4.80 to $4.98. Year to date, shares of ANIP have risen 19.4%.
Earnings of ANI Pharmaceuticals beat estimates in each of the last four quarters. ANI delivered a four-quarter average earnings surprise of 109.06%.
In the past 60 days, estimates for GSK’s 2024 EPS have risen from $3.87 to $4.03. Meanwhile, during the same period, EPS estimates for 2025 have improved from $4.20 to $4.40. Year to date, shares of GSK have risen 15.0%.
GSK's earnings beat estimates in three of the trailing four quarters while missing the mark on one occasion. On average, GSK’s four-quarter earnings surprise was 7.59%.