It has been about a month since the last earnings report for BioScrip, Inc. . Shares have added about 15.3% 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 the most recent earnings report in order to get a better handle on the important drivers.
First-Quarter Highlights
BioScrip, Inc. reported net loss from continuing operations of $19.4 million or a loss of $0.18 per share in the first quarter of 2017, compared to net loss of $9.5 million or a loss of $0.17 a year ago. The Zacks Consensus Estimate was a loss of $0.12.
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 first quarter fell 8.6% year over year to $217.8 million and also missed the Zacks Consensus Estimate of $229.4 million. The year-over-year decline was due to the company’s previously announced shift in strategy to focus on growing its core revenue mix coupled with the impact of the Cures Act. This was partially offset by the accretive impact of Home Solutions acquisition.
Gross profit during the first quarter was $65.5 million, up 2.1% year over year. Gross margin also expanded 317 basis points (bps) to 30.1%. Adjusted operating income was $56.1 million, marking a 5.5% rise year over year on a 14.2% fall in adjusted operating expenses to $9.5 million. Adjusted operating margin expanded 346 bps year over year to 25.7%.
Financials
BioScrip exited first-quarter 2017 with cash and cash equivalents of $15.9 million, significantly up from $9.5 million at the end of fiscal 2016.
2017 Guidance Intact
BioScrip reiterated its prior guidance for adjusted EBITDA at the range of $45.0 million to $55.0 million for full-year 2017. This guidance incorporates the estimated adverse effect of the Cures Act legislation and the company's estimates regarding its contract with UnitedHealthcare. Management continues to evaluate the impact of the UnitedHealthcare contract on its 2017 revenues and will provide an updated 2017 revenue guidance.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last one month period as none of them issued any earnings estimate revisions.
VGM Scores
At this time, BioScrip's stock has a poor Growth Score of 'F', however its Momentum is doing a bit better with a 'C'. 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.
Zacks' style scores indicate that the company's stock is suitable solely for momentum investors.
Outlook
The stock has a Zacks Rank #4 (Sell). We are expecting a below average return from the stock in the next few months.
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Why Is BioScrip (BIOS) Up 15.3% Since the Last Earnings Report?
It has been about a month since the last earnings report for BioScrip, Inc. . Shares have added about 15.3% 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 the most recent earnings report in order to get a better handle on the important drivers.
First-Quarter Highlights
BioScrip, Inc. reported net loss from continuing operations of $19.4 million or a loss of $0.18 per share in the first quarter of 2017, compared to net loss of $9.5 million or a loss of $0.17 a year ago. The Zacks Consensus Estimate was a loss of $0.12.
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 first quarter fell 8.6% year over year to $217.8 million and also missed the Zacks Consensus Estimate of $229.4 million. The year-over-year decline was due to the company’s previously announced shift in strategy to focus on growing its core revenue mix coupled with the impact of the Cures Act. This was partially offset by the accretive impact of Home Solutions acquisition.
Gross profit during the first quarter was $65.5 million, up 2.1% year over year. Gross margin also expanded 317 basis points (bps) to 30.1%. Adjusted operating income was $56.1 million, marking a 5.5% rise year over year on a 14.2% fall in adjusted operating expenses to $9.5 million. Adjusted operating margin expanded 346 bps year over year to 25.7%.
Financials
BioScrip exited first-quarter 2017 with cash and cash equivalents of $15.9 million, significantly up from $9.5 million at the end of fiscal 2016.
2017 Guidance Intact
BioScrip reiterated its prior guidance for adjusted EBITDA at the range of $45.0 million to $55.0 million for full-year 2017. This guidance incorporates the estimated adverse effect of the Cures Act legislation and the company's estimates regarding its contract with UnitedHealthcare. Management continues to evaluate the impact of the UnitedHealthcare contract on its 2017 revenues and will provide an updated 2017 revenue guidance.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last one month period as none of them issued any earnings estimate revisions.
BioScrip, Inc. Price and Consensus
BioScrip, Inc. Price and Consensus | BioScrip, Inc. Quote
VGM Scores
At this time, BioScrip's stock has a poor Growth Score of 'F', however its Momentum is doing a bit better with a 'C'. 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.
Zacks' style scores indicate that the company's stock is suitable solely for momentum investors.
Outlook
The stock has a Zacks Rank #4 (Sell). We are expecting a below average return from the stock in the next few months.