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Why Is Theravance Bio (TBPH) Up 0.4% Since Last Earnings Report?

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It has been about a month since the last earnings report for Theravance Biopharma (TBPH - Free Report) . Shares have added about 0.4% in that time frame, underperforming 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 drivers.

Theravance Q4 Earnings and Sales Miss Estimates

Theravance incurred a loss of 43 cents per share for fourth-quarter 2021, wider than the Zacks Consensus Estimate of a loss of 30 cents but narrower than the year-ago loss of 92 cents.   

Total revenues of $14.9 million missed the Zacks Consensus Estimate of $15.59 million. Revenues were down 20.2% year over year.

The top line comprised collaboration revenues worth $2.8 million from Janssen, a wholly-owned subsidiary of Johnson & Johnson, and $12.1 million from the collaboration agreement with Viatris in relation to Yupelri.

Quarter in Detail

Research & development expenses were $31.2 million, down 52.1% from the year-ago figure.

Selling, general & administrative expenses were down 28.4% year over year to $21.5 million.

As of Dec 31, 2021, Theravance had cash, cash equivalents and marketable securities worth $173.5 million compared with $216.2 million on Sep 30, 2021.

Full-Year Results

For 2021, Theravance generated revenues worth $55.3 million, reflecting a decrease of 23% year over year.

For the same period, TBPH incurred a loss of $2.87 per share compared with the year-ago loss of $4.46.

2022 Guidance

For 2021, Theravance expects adjusted research & development expenses (excluding one-time figures and share-based compensation) in the range of $45-$55 million, and adjusted selling, general and administrative expenses between $35 million and $45 million.

TBPH expects to achieve sustainability in cash flow and become cash flow positive in the second half of 2022.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates have trended downward during the past month.

The consensus estimate has shifted -193.33% due to these changes.

VGM Scores

At this time, Theravance Bio has an average Growth Score of C, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of F on the value side, putting it in the bottom 20% quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. 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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