A month has gone by since the last earnings report for Theravance Biopharma, Inc.TBPH . Shares have lost about 1.9% in that time frame.
Will the recent negative trend continue leading up to its next earnings release, or is TBPH due for a breakout? 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 Biopharma Q1 Loss Narrows, Sales Up Y/Y
Theravance Biopharma reported first-quarter 2018 loss of $1.22 per share, narrower than the Zacks Consensus Estimate of a loss of $1.29 and the year-ago loss of $1.27.
Total revenues in the quarter surged 169.5% year over year to $8.3 million. This upside can mainly be attributed to amortization of upfront fees related to a global development and commercialization agreement with Janssen, or TD-1473. Moreover, the top line surpassed the Zacks Consensus Estimate of $5.74 million.
Vibativ generated U.S. revenues of $3.7 million in the first quarter, up 20.6% from the year-ago period. Revenues from collaborations were $4.6 million compared with $0.04 million in the year-earlier quarter.
Research and development expenses were $47.8 million, up 21.4% from the year-ago period while selling, general & administrative expenses rose 44.6% to $24.7 million. The increase in expenses was due to higher employee-related costs and stock-based compensation.
2018 Outlook Reiterated
Theravance continues to expect 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. There has been one revision higher for the current quarter compared to two lower. Last month, the consensus estimate has shifted downward by 15.1% due to these changes.
At this time, TBPH has a strong Growth Score of A, though it is lagging a lot on the momentum front with an F. Following the exact same course, the stock was also allocated a grade of F on the value side, putting it in the bottom 20% 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.
The company's stock is suitable solely for growth based on our styles scores.
Estimates have been broadly trending downward for the stock and the magnitude of these revisions indicates a downward shift. Notably, TBPH has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.