It has been about a month since the last earnings report for BioScrip, Inc. . Shares have added about 18.5% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock’s next earnings release, or is it 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 catalysts.
Recent Earnings
BioScrip reported net loss from continuing operations of $5.2 million or loss of $0.06 per share in the fourth quarter of 2016, much narrower than the year-ago net loss of $16.9 million or loss of $0.28. The Zacks Consensus Estimate for the quarter was a loss of $0.08.
For full-year 2016, the company reported net loss from continuing operations of $34.4 million and loss of $0.46 per share, much narrower than the prior-year net loss of $303.4 million or loss of $4.56.
Revenues
With the completion of the company’s non-core PBM business divestment (treated as discontinued operation in the previous quarter), BioScrip currently has a simplified business structure focused on core Infusion Services.
Revenues from continuing operations in the fourth quarter fell 1.5% year over year to $240.1 million but exceeded the Zacks Consensus Estimate of $235 million. The year-over-year decline was due to the ongoing favorable shift in revenue mix to a greater percentage of core revenue and less lower-margin non-core revenues in the reported quarter.
For full-year 2016, revenues from continuing operations fell 4.7% year over year to $935.6 million.
Gross profit during the fourth quarter was $74.6 million, up 13.3% year over year. Gross margin also expanded 405 basis points (bps) to 31.1% as a result of the improved revenue mix on a year-over-year basis. Adjusted operating income was $65.8 million, marking a 17% rise from the year-ago adjusted number of $56.3 million due to an 8.7% fall in adjusted operating expenses to $8.8 million. Adjusted operating margin expanded 434 bps year over year to 27.4%.
Financials
BioScrip exited fiscal 2016 with cash and cash equivalents of $9.5 million, significantly down from $15.5 million in the prior fiscal.
2017 Guidance
Management issued guidance for full-year 2017 which includes the estimated adverse impact of the Cures Act legislation. The Cures Act legislation results in a significant reduction in Medicare reimbursement rates on certain drugs effective Jan 1, 2017 and does not reimburse any service payments for the administration of these drugs to patients via home infusion pharmacies. Full-year 2017 revenues are expected in the range of $920.0 million to $950.0 million. The Zacks Consensus Estimate for full-year revenue is $952.6 million.
The company has also projected adjusted EBITDA in the range of $45.0 million to $55.0 million.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimate flatlined during the past month. There has been one upward revision for the current quarter compared to one downward. In the past month, the consensus estimate has shifted downward by 7.9% due to these changes.
VGM Scores
At this time, BioScrip's stock has a great Growth Score of 'A', though it is lagging a lot on the momentum front with a 'D'. Charting a somewhat similar path, the stock was allocated a grade of 'F' on the value side, putting it in the fifth 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.
The stock is suitable solely for growth based on our styles scores.
Outlook
The stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.
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Why Is BioScrip (BIOS) Up 18.5% Since the Last Earnings Report?
It has been about a month since the last earnings report for BioScrip, Inc. . Shares have added about 18.5% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock’s next earnings release, or is it 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 catalysts.
Recent Earnings
BioScrip reported net loss from continuing operations of $5.2 million or loss of $0.06 per share in the fourth quarter of 2016, much narrower than the year-ago net loss of $16.9 million or loss of $0.28. The Zacks Consensus Estimate for the quarter was a loss of $0.08.
For full-year 2016, the company reported net loss from continuing operations of $34.4 million and loss of $0.46 per share, much narrower than the prior-year net loss of $303.4 million or loss of $4.56.
Revenues
With the completion of the company’s non-core PBM business divestment (treated as discontinued operation in the previous quarter), BioScrip currently has a simplified business structure focused on core Infusion Services.
Revenues from continuing operations in the fourth quarter fell 1.5% year over year to $240.1 million but exceeded the Zacks Consensus Estimate of $235 million. The year-over-year decline was due to the ongoing favorable shift in revenue mix to a greater percentage of core revenue and less lower-margin non-core revenues in the reported quarter.
For full-year 2016, revenues from continuing operations fell 4.7% year over year to $935.6 million.
Gross profit during the fourth quarter was $74.6 million, up 13.3% year over year. Gross margin also expanded 405 basis points (bps) to 31.1% as a result of the improved revenue mix on a year-over-year basis. Adjusted operating income was $65.8 million, marking a 17% rise from the year-ago adjusted number of $56.3 million due to an 8.7% fall in adjusted operating expenses to $8.8 million. Adjusted operating margin expanded 434 bps year over year to 27.4%.
Financials
BioScrip exited fiscal 2016 with cash and cash equivalents of $9.5 million, significantly down from $15.5 million in the prior fiscal.
2017 Guidance
Management issued guidance for full-year 2017 which includes the estimated adverse impact of the Cures Act legislation. The Cures Act legislation results in a significant reduction in Medicare reimbursement rates on certain drugs effective Jan 1, 2017 and does not reimburse any service payments for the administration of these drugs to patients via home infusion pharmacies. Full-year 2017 revenues are expected in the range of $920.0 million to $950.0 million. The Zacks Consensus Estimate for full-year revenue is $952.6 million.
The company has also projected adjusted EBITDA in the range of $45.0 million to $55.0 million.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimate flatlined during the past month. There has been one upward revision for the current quarter compared to one downward. In the past month, the consensus estimate has shifted downward by 7.9% due to these changes.
BioScrip, Inc. Price and Consensus
BioScrip, Inc. Price and Consensus | BioScrip, Inc. Quote
VGM Scores
At this time, BioScrip's stock has a great Growth Score of 'A', though it is lagging a lot on the momentum front with a 'D'. Charting a somewhat similar path, the stock was allocated a grade of 'F' on the value side, putting it in the fifth 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.
The stock is suitable solely for growth based on our styles scores.
Outlook
The stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.