It has been about a month since the last earnings report for Emergent Biosolutions (EBS). Shares have lost about 23.6% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Emergent Biosolutions 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.
Emergent Earnings Miss in Q4, Revenues Beat Estimates
Emergent BioSolutions reported fourth-quarter 2019 earnings of $1.57 per share, which missed the Zacks Consensus Estimate of $1.67. However, the bottom line increased significantly from the year-ago earnings of 78 cents.
Revenues in the reported quarter surged 33.1% from the prior-year period to $360.4 million, primarily backed by high product sales owing to the company’s recent acquisitions and other product sales. The top line also beat the Zacks Consensus Estimate of $351 million.
Quarter in Detail
Total product sales jumped 43% to $310.8 million from the year-earlier quarter. This revenue rise was mainly on the back of contribution from Narcan nasal spray and higher sales of small pox vaccine ACAM2000. Newly-acquired product, Narcan (naloxone HCl) nasal spray added $66.9 million to product sales, jumping 60% year over year.
ACAM2000 added $78.5 million to product sales in the reported quarter. Other product sales also soared 75% on a year-over-year basis to $72.5 million.
However, anthrax vaccines (BioThrax and AV7909) sales declined 31% to $92.9 million in the reported quarter.
Revenues from contracts and grants decreased 9% year over year to $24.1 million, primarily due to reduced activities associated with certain funding programs.
Contract manufacturing revenues fell 5% to $25.5 million from the year-ago figure. This downside was primarily due to the contracted service work that took place in fourth-quarter 2018 but did not recur in the same period last year.
The company recorded adjusted EBITDA of $134.3 million in the reported quarter compared with $76.2 million in the year-ago period.
2020 Outlook
Emergent anticipates revenues of $1.18-$1.27 billion for 2020. The company expects adjusted net income within $160-$210 million while adjusted EBITDA is anticipated in the band of $300-$360 million.
In the first quarter of 2020, the company expects total revenues within $190-$215 million.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
Emergent Biosolutions Inc. (EBS): Free Stock Analysis Report
Original post