It has been about a month since the last earnings report for Theravance Biopharma (TBPH Quick QuoteTBPH - Free Report) . Shares have lost about 6.1% 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 Q1 Earnings Top, Revenues Match Estimates

Theravance reported first-quarter 2024 adjusted net loss of 9 cents per share, which was narrower than the Zacks Consensus Estimate of a loss of 19 cents per share.

The reported loss excludes share-based compensation expense and non-cash interest expense. In the year-ago quarter, the company had reported a loss of 24 cents per share.

Total revenues came in at $14.5 million, in line with the Zacks Consensus Estimate. Revenues rose almost 39.4% year over year owing to increased collaboration revenues from partner Viatris.

Quarter in Detail

The top line fully comprised Viatris’ collaboration revenues in relation to Yupelri (revefenacin) sales.

Research and development (R&D) expenses (excluding share-based compensation) totaled $7.5 million, down almost 38.5% from the year-ago quarter’s level. Selling, general and administrative (SG&A) expenses (excluding share-based compensation) declined around 13.3% year over year to $13 million.

As of Mar 31, 2024, Theravance had cash, cash equivalents and marketable securities worth $100 million compared with $102.4 million as of Dec 31, 2023.

2024 Guidance

Theravance continues to expect adjusted R&D expenses (excluding share-based compensation) in the $30-$36 million range. Adjusted SG&A expenses (excluding share-based compensation) are projected between $45 million and $55 million.

Theravance expects to incur adjusted loss during the first half of 2024 and achieve breakeven in the second half of 2024 while expecting limited cash burn for the year.

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 9.15% due to these changes.

VGM Scores

Currently, Theravance Bio has a nice Growth Score of B, however its Momentum Score is doing a bit 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 C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Theravance Bio has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Theravance Bio belongs to the Zacks Medical - Drugs industry. Another stock from the same industry, Zoetis (ZTS Quick QuoteZTS - Free Report) , has gained 5.7% over the past month. More than a month has passed since the company reported results for the quarter ended March 2024.

Zoetis reported revenues of $2.19 billion in the last reported quarter, representing a year-over-year change of +9.5%. EPS of $1.38 for the same period compares with $1.31 a year ago.

Zoetis is expected to post earnings of $1.49 per share for the current quarter, representing a year-over-year change of +5.7%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.1%.

Zoetis has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.