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BioScrip (BIOS) Up 5.2% Since Last Earnings Report: Can It Continue?

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It has been about a month since the last earnings report for BioScrip (BIOS - Free Report) . Shares have added about 5.2% in that time frame, outperforming the S&P 500.

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

BioScrip Posts Loss in Q1, Margins Deteriorate

BioScrip incurred a loss from continuing operations of 10 cents per share in first-quarter 2019, narrower than the Zacks Consensus Estimate and the year-ago figure of a loss of 12 cents each.

Revenues

Net revenues of $179 million in the first quarter rose 6.2% year over year. The figure also exceeded the Zacks Consensus Estimate of $178 million.

Margins

In the first quarter, gross profit improved 4.8% to $57.7 million. However, gross margin contracted 43 basis points (bps) to 32.2%. On account of a 7.7% increase in general and administrative costs, adjusted operating margin slid 52 bps to 25.8%.

Financials

BioScrip exited the first quarter of 2019 with cash and cash equivalents of $5.7 million compared with $14.5 million at the end of 2018.

Guidance

Given the pending merger with Option Care, BioScrip has not provided any financial guidance.

How Have Estimates Been Moving Since Then?

Fresh estimates followed a downward path over the past two months. The consensus estimate has shifted -26.67% due to these changes.

VGM Scores

Currently, BioScrip has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% 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.

Outlook

BioScrip has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


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