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Why Is Theravance Bio (TBPH) Up 17.9% Since Last Earnings Report?

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A month has gone by since the last earnings report for Theravance Biopharma (TBPH - Free Report) . Shares have added about 17.9% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Theravance Bio 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.

Theravance Biopharma Beats on Q3 Earnings, Inks Deal for Vibativ

Theravance Biopharma incurred third-quarter 2018 loss of $1.10 per share, narrower than the Zacks Consensus Estimate of a loss of $1.18 and the year-ago loss of $1.27.

Total revenues in the quarter skyrocketed 200% year over year to $12.8 million, mainly on the back of an upfront payment received from J&J in relation to a joint development agreement for Theravance’s pan-Janus kinase inhibitor, TD-1473. Moreover, the top line surpassed the Zacks Consensus Estimate of $10.8 million.

Quarterly Details

Vibativ g generated U.S. revenues of $3.8 million in the third quarter, down 7.3% from the year-ago period's figure. Revenues from collaborations were $8.9 million compared with $0.14 million in the year-earlier quarter.

Research and development expenses were $52.7 million, up 34.1% from the year-ago period, primarily due to higher cost related to employees and share-based compensation.

2018 Outlook Reiterated

Theravance persistently anticipates operating loss excluding non-cash share-based compensation for 2018 in the range of $180-$200 million.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in fresh estimates. The consensus estimate has shifted 15.93% due to these changes.

VGM Scores

Currently, Theravance Bio has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. However, 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 F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Theravance Bio has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.




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