Theravance Bio (TBPH) Up 2.1% Since Last Earnings Report: Can It Continue?

A month has gone by since the last earnings report for Theravance Biopharma (TBPH). Shares have added about 2.1% in that time frame, outperforming 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 Miss, Revenues Beat Estimates

Theravance Biopharma incurred a loss of $1.17 per share in fourth-quarter 2019, wider than the Zacks Consensus Estimate of $1.11 and also the year-ago loss of 92 cents.

However, total revenues of $29.5 million in the quarter beat the Zacks Consensus Estimate of $18 million. Revenues also soared 87.9% year over year, mainly owing to an upfront payment from Pfizer (NYSE:PFE) for rights to its skin-selective pan-JAK inhibitor program. Total revenues in the fourth quarter comprised collaboration revenues worth $9.6 million and $9.9 million received from Mylan (NASDAQ:MYL).

Quarterly Details

Research & development expenses were $67 million, up 28.1% from the year-ago quarter, primarily due to higher employee-related expenses and higher external cost.

Selling, general & administrative expenses escalated 29.4% to $33 million due to higher share-based compensation.

As of Dec 31, 2019, Theravance had cash, cash equivalents, marketable securities of $285.8 million compared with $352.9 million as of Sep 30, 2019.

2020 Outlook

For the full year, Theravance anticipates operating loss (excluding non-cash share-based compensation) in the range of $205-$225 million

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 -7.11% due to these changes.

VGM Scores

Currently, Theravance Bio has a poor Growth Score of F, however its Momentum Score is doing a bit better 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 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.