We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Emergent BioSolutions Inc. (EBS - Free Report) reported earnings of 74 cents per share in the fourth quarter of 2017, which beat the Zacks Consensus Estimate of 69 cents. However, the bottom line was in line with the year-ago figure.
Shares of Emergent have significantly outperformed the industry in a year’s time. The stock has jumped 65.9% against the industry’s decrease of 2.6%.
Revenues in the reported quarter climbed 28% from the year-ago period to $193.8 million, primarily on the back of substantially higher product sales. This was however, partially offset by lower contracts and grants revenues. The top line also surpassed the consensus mark of $191 million.
Quarter in Detail
Total product sales significantly soared 85% to $161.6 million from the year-earlier quarter, mainly owing to increase in sales of Emergent’s anthrax vaccine, BioThrax, under the company’s current contract with the Centers for Disease Control and Prevention for procurement of the same. Moreover, initial sales of raxibacumab (anthrax monoclonal antibody) and ACAM2000 (smallpox vaccine), acquired from GlaxoSmithkline (GSK - Free Report) and Sanofi (SNY - Free Report) respectively, last year, also contributed to higher sales.
Notably, in early 2017, Emergent signed a two-year contract with the Biomedical Advanced Research and Development Authority for the delivery of BioThrax to the Strategic National Stockpile.
Contracts, grants and collaboration revenues plunged 66% year over year to $15.9 million, primarily due to decrease in revenues following completion of multiple contracts with the U.S. government as well as reduction in the R&D activities, related to certain ongoing funded development programs.
Contract manufacturing revenues were $16.2 million, slightly slipping 3% compared with the prior-year number.
Research and development expenses were $28.5 million, up 5% from the comparable quarter last year. This rise is attributable to higher contract development services performed for next-generation anthrax vaccine, NuThrax and broad-spectrum antibiotic, EV-035 series.
Selling, general and administrative expenses also increased 19% to $42 million due to higher compensation expense and professional services fees.
2017 Results
Full-year sales grew 14.8% year over year to $560.9 million, beating the Zacks Consensus Estimate of $557.4 million. The top line also met the preliminary results, announced last month.
The full-year earnings of $1.90 per share outpaced the Zacks Consensus Estimate of $1.85. Moreover, the bottom line is higher than $1.57 a year ago.
2018 Outlook
Emergent maintained its previously issued revenue guidance in the range of $715-$755 million in 2018. The midpoint of $735 million in the guided range reflects a 31% increase over 2017 revenues of $560.9 million. The Zacks Consensus Estimate for current-year top line is pegged at $731.5 million.
However, the company lowered its first-quarter of 2018 revenue guidance in the band of $125-$150 million from the previous expectation of $145-$160 million on an unfavorable timing of deliveries of BioThrax.
The company anticipates adjusted net income between $110 million and $125 million. The midpoint of $117.5 million in the former forecast represents an improvement of 23% year over year.
Other Updates
In December 2107, Emergent was awarded a contract worth approximately $8 million by the Department of National Defence to deliver Anthrasil to the Canadian government. Anthrasil is indicated for the treatment of inhalational anthrax in adult and pediatric patients combined with appropriate antibacterial drugs.
Meanwhile, in November 2017, Emergent’s manufacturing facility for smallpox vaccine, ACAM2000, at Canton, MA was approved by the FDA, which allowed the company to start product deliveries thereafter.
Emergent BioSolutions Inc. Price, Consensus and EPS Surprise
Exelixis’ earnings per share estimates for 2018 have been revised upward from 73 cents to 77 cents over the last 60 days. The company pulled off a positive surprise in all the trailing four quarters with an average beat of 572.92%. Share price of the company has surged 33.9% in a year’s time.
Zacks Top 10 Stocks for 2018
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2018?
Last year's 2017 Zacks Top 10 Stocks portfolio produced double-digit winners, including FMC Corp. and VMware which racked up stellar gains of +67.9% and +61%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Image: Bigstock
Emergent (EBS) Q4 Earnings Beat Estimates, 2018 View Solid
Emergent BioSolutions Inc. (EBS - Free Report) reported earnings of 74 cents per share in the fourth quarter of 2017, which beat the Zacks Consensus Estimate of 69 cents. However, the bottom line was in line with the year-ago figure.
Shares of Emergent have significantly outperformed the industry in a year’s time. The stock has jumped 65.9% against the industry’s decrease of 2.6%.
Revenues in the reported quarter climbed 28% from the year-ago period to $193.8 million, primarily on the back of substantially higher product sales. This was however, partially offset by lower contracts and grants revenues. The top line also surpassed the consensus mark of $191 million.
Quarter in Detail
Total product sales significantly soared 85% to $161.6 million from the year-earlier quarter, mainly owing to increase in sales of Emergent’s anthrax vaccine, BioThrax, under the company’s current contract with the Centers for Disease Control and Prevention for procurement of the same. Moreover, initial sales of raxibacumab (anthrax monoclonal antibody) and ACAM2000 (smallpox vaccine), acquired from GlaxoSmithkline (GSK - Free Report) and Sanofi (SNY - Free Report) respectively, last year, also contributed to higher sales.
Notably, in early 2017, Emergent signed a two-year contract with the Biomedical Advanced Research and Development Authority for the delivery of BioThrax to the Strategic National Stockpile.
Contracts, grants and collaboration revenues plunged 66% year over year to $15.9 million, primarily due to decrease in revenues following completion of multiple contracts with the U.S. government as well as reduction in the R&D activities, related to certain ongoing funded development programs.
Contract manufacturing revenues were $16.2 million, slightly slipping 3% compared with the prior-year number.
Research and development expenses were $28.5 million, up 5% from the comparable quarter last year. This rise is attributable to higher contract development services performed for next-generation anthrax vaccine, NuThrax and broad-spectrum antibiotic, EV-035 series.
Selling, general and administrative expenses also increased 19% to $42 million due to higher compensation expense and professional services fees.
2017 Results
Full-year sales grew 14.8% year over year to $560.9 million, beating the Zacks Consensus Estimate of $557.4 million. The top line also met the preliminary results, announced last month.
The full-year earnings of $1.90 per share outpaced the Zacks Consensus Estimate of $1.85. Moreover, the bottom line is higher than $1.57 a year ago.
2018 Outlook
Emergent maintained its previously issued revenue guidance in the range of $715-$755 million in 2018. The midpoint of $735 million in the guided range reflects a 31% increase over 2017 revenues of $560.9 million. The Zacks Consensus Estimate for current-year top line is pegged at $731.5 million.
However, the company lowered its first-quarter of 2018 revenue guidance in the band of $125-$150 million from the previous expectation of $145-$160 million on an unfavorable timing of deliveries of BioThrax.
The company anticipates adjusted net income between $110 million and $125 million. The midpoint of $117.5 million in the former forecast represents an improvement of 23% year over year.
Other Updates
In December 2107, Emergent was awarded a contract worth approximately $8 million by the Department of National Defence to deliver Anthrasil to the Canadian government. Anthrasil is indicated for the treatment of inhalational anthrax in adult and pediatric patients combined with appropriate antibacterial drugs.
Meanwhile, in November 2017, Emergent’s manufacturing facility for smallpox vaccine, ACAM2000, at Canton, MA was approved by the FDA, which allowed the company to start product deliveries thereafter.
Emergent BioSolutions Inc. Price, Consensus and EPS Surprise
Emergent BioSolutions Inc. Price, Consensus and EPS Surprise | Emergent BioSolutions Inc. Quote
Zacks Rank & Key Pick
Emergent carries a Zacks Rank #3 (Hold). A better-ranked stock in the health care sector is Exelixis, Inc. (EXEL - Free Report) , carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Exelixis’ earnings per share estimates for 2018 have been revised upward from 73 cents to 77 cents over the last 60 days. The company pulled off a positive surprise in all the trailing four quarters with an average beat of 572.92%. Share price of the company has surged 33.9% in a year’s time.
Zacks Top 10 Stocks for 2018
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2018?
Last year's 2017 Zacks Top 10 Stocks portfolio produced double-digit winners, including FMC Corp. and VMware which racked up stellar gains of +67.9% and +61%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2018 today >>