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Theravance Bio (TBPH) Up 2.2% Since Last Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for Theravance Biopharma (TBPH - Free Report) . Shares have added about 2.2% 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 the most recent earnings report in order to get a better handle on the important drivers.
Theravance’s Q2 Loss Wider Than Expected, Revenues Rise Y/Y
Theravance reported a second-quarter 2024 adjusted net loss of 13 cents per share, which was wider than the Zacks Consensus Estimate of a loss of 9 cents. But the figure was in line with the year-ago quarter’s actual.
The reported loss excludes share-based compensation expense, non-cash impairment of long-lived assets, income tax expense and non-cash interest expense. Including these items, the company reported a loss of 34 cents per share in the second quarter.
Total revenues came in at $14.3 million, missing the Zacks Consensus Estimate of $16 million. Revenues, however, rose 4.4% year over year owing to increased collaboration revenues from partner Viatris.
Quarter in Detail
The top line fully comprised Viatris’ collaboration revenues related to Yupelri sales.
Research and development expenses (excluding share-based compensation) totaled $8.8 million, up almost 17.3% from the year-ago quarter’s level.
Selling, general and administrative expenses (excluding share-based compensation) declined around 13.4% year over year to $12.9 million.
As of Jun 30, 2024, Theravance had cash, cash equivalents and marketable securities worth $96.1 million compared with $100 million as of Mar 31, 2024.
2024 Guidance
Theravance continues to expect adjusted R&D expenses (excluding share-based compensation) in the $30-$36 million range. Adjusted SG&A expenses (excluding share-based compensation) are projected between $45 million and $55 million.
The company continues to expect share-based compensation expenses of $18-$22 million in 2024.
For the remainder of 2024, TBPH now expects levels of both adjusted losses and cash burn to be the same as the first half of 2024. Earlier, the company expected to achieve breakeven in the second half of 2024 while expecting limited cash burn for 2024.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -39.71% due to these changes.
VGM Scores
Currently, Theravance Bio has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. Following the exact same course, 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 these revisions 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.
Performance of an Industry Player
Theravance Bio is part of the Zacks Medical - Drugs industry. Over the past month, Ionis Pharmaceuticals (IONS - Free Report) , a stock from the same industry, has gained 0.6%. The company reported its results for the quarter ended June 2024 more than a month ago.
Ionis Pharmaceuticals reported revenues of $225 million in the last reported quarter, representing a year-over-year change of +19.7%. EPS of -$0.45 for the same period compares with -$0.60 a year ago.
Ionis Pharmaceuticals is expected to post a loss of $1.17 per share for the current quarter, representing a year-over-year change of -13.6%. Over the last 30 days, the Zacks Consensus Estimate has changed +2.1%.
Ionis Pharmaceuticals has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.
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Theravance Bio (TBPH) Up 2.2% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Theravance Biopharma (TBPH - Free Report) . Shares have added about 2.2% 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 the most recent earnings report in order to get a better handle on the important drivers.
Theravance’s Q2 Loss Wider Than Expected, Revenues Rise Y/Y
Theravance reported a second-quarter 2024 adjusted net loss of 13 cents per share, which was wider than the Zacks Consensus Estimate of a loss of 9 cents. But the figure was in line with the year-ago quarter’s actual.
The reported loss excludes share-based compensation expense, non-cash impairment of long-lived assets, income tax expense and non-cash interest expense. Including these items, the company reported a loss of 34 cents per share in the second quarter.
Total revenues came in at $14.3 million, missing the Zacks Consensus Estimate of $16 million. Revenues, however, rose 4.4% year over year owing to increased collaboration revenues from partner Viatris.
Quarter in Detail
The top line fully comprised Viatris’ collaboration revenues related to Yupelri sales.
Research and development expenses (excluding share-based compensation) totaled $8.8 million, up almost 17.3% from the year-ago quarter’s level.
Selling, general and administrative expenses (excluding share-based compensation) declined around 13.4% year over year to $12.9 million.
As of Jun 30, 2024, Theravance had cash, cash equivalents and marketable securities worth $96.1 million compared with $100 million as of Mar 31, 2024.
2024 Guidance
Theravance continues to expect adjusted R&D expenses (excluding share-based compensation) in the $30-$36 million range. Adjusted SG&A expenses (excluding share-based compensation) are projected between $45 million and $55 million.
The company continues to expect share-based compensation expenses of $18-$22 million in 2024.
For the remainder of 2024, TBPH now expects levels of both adjusted losses and cash burn to be the same as the first half of 2024. Earlier, the company expected to achieve breakeven in the second half of 2024 while expecting limited cash burn for 2024.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -39.71% due to these changes.
VGM Scores
Currently, Theravance Bio has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. Following the exact same course, 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 these revisions 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.
Performance of an Industry Player
Theravance Bio is part of the Zacks Medical - Drugs industry. Over the past month, Ionis Pharmaceuticals (IONS - Free Report) , a stock from the same industry, has gained 0.6%. The company reported its results for the quarter ended June 2024 more than a month ago.
Ionis Pharmaceuticals reported revenues of $225 million in the last reported quarter, representing a year-over-year change of +19.7%. EPS of -$0.45 for the same period compares with -$0.60 a year ago.
Ionis Pharmaceuticals is expected to post a loss of $1.17 per share for the current quarter, representing a year-over-year change of -13.6%. Over the last 30 days, the Zacks Consensus Estimate has changed +2.1%.
Ionis Pharmaceuticals has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.