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Theravance (TBPH) Down 5.8% Since Earnings Report: Can It Rebound?

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It has been about a month since the last earnings report for Theravance Biopharma, Inc. (TBPH - Free Report) . Shares have lost about 5.8% in that time frame, underperforming the market.

Will the recent negative trend continue leading up to the stock's next earnings release, or is it 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 catalysts.

Theravance Q1 Loss Wider than Expected; Revenue Miss

Theravance Biopharma reported first-quarter 2017 loss of $1.27 per share, much wider than both Zacks Consensus Estimate of a loss of $1.14 and the year-ago loss of $1.10.

Total revenue in the quarter plunged 83.2% year over year to $3.1 million, mainly due to receipt of $15.1 million as collaborative arrangements during the same period, a year ago. Reported revenues also missed the Zacks Consensus Estimate of $5 million.

Quarterly Details

Vibativ generated U.S. revenues of $3.1 million in the first quarter, down 6% from the year-ago period and a 38% sequentially due to the impact of seasonality.

Revenues from collaborations were $0.04 million compared to a massive $15.1 million in the year-ago quarter.

Research and development expenses were $40.6 million, up 13.7% from the year-ago period. This was mainly due to costs associated with advancement of company’s priority pipeline programs.

Selling, general & administrative expenses on the other hand, declined 11.9% to $20.8 million. This was primarily due to lower costs associated with share-based compensation expenses and lower external sales and marketing expenses.

2017 Outlook

Theravance continues to expect an operating loss (excluding share-based compensation) in the range of $195.0 to $205.0 million in 2017.

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, Theravance's stock has a poor Growth Score of 'F', a grade with the same score on the momentum front. Following the exact same course, the stock was allocated also 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 'F'. If you aren't focused on one strategy, this score is the one you should be interested in.

Our style scores indicate investors will probably be better served looking elsewhere.

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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