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Theravance Bio (TBPH) Down 27.7% Since Last Earnings Report: Can It Rebound?

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It has been about a month since the last earnings report for Theravance Biopharma (TBPH - Free Report) . Shares have lost about 27.7% in that time frame, underperforming the S&P 500.

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

Theravance Q1 Loss Widens, Revenues Miss Estimates

Theravance Biopharma incurred a loss of $1.32 per share in first-quarter 2019, wider than the Zacks Consensus Estimate of a loss of $1.18 as well as the year-ago loss of $1.22.

Total revenues of $5.3 million in the quarter significantly missed the Zacks Consensus Estimate of $16.45 million. Moreover, revenues dropped 36.1% year over year due to no product sales in the quarter.

Quarterly Details

Last November, Theravance completed the sale of its only marketed drug, Vibativ, to Cumberland Pharmaceuticals. As a result, the company was not able to generate any revenues from product sales in the first quarter of 2019.

The entire revenues comprised collaboration revenues from partner Johnson & Johnson for the joint development of Theravance’s pan-Janus kinase inhibitor, TD-1473, to treat inflammatory intestinal diseases. Collaboration revenues were $4.6 million in the year-earlier quarter.

Research and development expenses were $53.8 million, up 12.8% from the year-ago quarter, primarily due to higher costs to support key programs and higher employee related expenses.

Selling, general & administrative expenses inched up 2% to $25.2 million due to increased collaboration expenses related to the launch activities of Yupelri.

2019 Outlook

For 2019, Theravance anticipates operating loss excluding non-cash share-based compensation to be $210-$230 million, unchanged from the previously issued guidance.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed an upward trend in fresh estimates.

VGM Scores

Currently, Theravance Bio has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. However, the stock was allocated a grade of F on the value side, putting it in the lowest 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 trending upward 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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