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Emergent's (EBS) Q4 Earnings & Sales Beat, CDMO View Cut

·4 min read

Emergent BioSolutions Inc. EBS reported fourth-quarter 2021 earnings of $4.50 per share, beating the Zacks Consensus Estimate of $3.89. In the year-ago quarter, the company had reported earnings of $3.67 per share.

Revenues in the reported quarter were $723 million, up 24% from the prior-year period. Higher sales of Narcan nasal spray and anthrax vaccine were partially offset by the loss of sales from the smallpox vaccine and lower CDMO services revenues in the quarter. The top line beat the Zacks Consensus Estimate of $712.56 million.

Shares of Emergent have declined 55.9% in the past year compared with the industry’s decrease of 39%.

Zacks Investment Research
Zacks Investment Research

Image Source: Zacks Investment Research

Quarter in Detail

Total product sales increased 27% from the year-ago quarter to $434.3 million, driven by strong sales of the Narcan nasal spray and the anthrax vaccine.

Narcan (naloxone HCl) nasal spray added $120.6 million to product sales, reflecting an increase of 56% year over year, driven primarily by growth in the U.S. and Canadian markets.

Sales of anthrax vaccines (BioThrax and AV7909) were $137.7 million in the reported quarter, up 19% year over year. The increase in sales of anthrax vaccines was due to an increase in deliveries of AV7909 for the strategic national stockpile.

Emergent reported sales of $125.8 million for its smallpox vaccine, ACAM2000, down 3% year over year. The decrease in smallpox sales was due to the unfavorable timing of deliveries to the U.S. government.

Other product sales were $50.2 million compared with $18.5 million in the year-ago period.

Revenues from contracts and grants increased 64% year over year to $70.6 million.

Total CDMO revenues were up 10% year over year to $218.3 million. However, CDMO services revenues declined 20% year-over-year to $51.2 million. The decrease largely was due to the loss of a manufacturing contract for AstraZeneca’s COVID-19 vaccine last year following a mishap at its Baltimore plant.

The company reported adjusted EBITDA of $347.9 million for the fourth quarter, up 19.6% from the prior-year quarter.

Full-Year Results

Emergent reported revenues of $1.79 billion, up 15.3% year over year. The company reported earnings of $6.02 per share for 2021, down 24% from the year-ago period.

Updates 2022 Guidance

Emergent lowered its previous revenue guidance for 2022 from the range of $1.4-$1.5 billion to $1.3-$1.4 billion, especially taking into account lower anticipated revenues from CDMO services. The Zacks Consensus Estimate for total revenues stands at $1.45 billion.

The company lowered the CDMO services revenue guidance and now expects it to be between $330 million and $380 million compared with the previous range of $430-$480 million.

The company maintained its previous guidance for all other business segments. It continues to expect sales of $280 - $300 million from anthrax vaccines, $190 - $210 million from smallpox vaccine and $240 - $310 million from Narcan nasal spray. The guidance for revenues from other products, and Contracts and Grants was reaffirmed in the range of $200-$260 million.

Emergent anticipates lower adjusted net income within $95-$140 million, compared with the previous expectation of $135-$180 million. Adjusted EBITDA is anticipated in the range of $240-$300 million, down from $280-$340 million expected previously.

Emergent Biosolutions Inc. Price, Consensus and EPS Surprise

Emergent Biosolutions Inc. Price, Consensus and EPS Surprise
Emergent Biosolutions Inc. Price, Consensus and EPS Surprise

Emergent Biosolutions Inc. price-consensus-eps-surprise-chart | Emergent Biosolutions Inc. Quote

Zacks Rank & Stocks to Consider

Emergent currently has a Zacks Rank #3 (Hold).

Some better-ranked stocks from the same sector include Collegium Pharmaceutical COLL, Catalyst Pharmaceuticals CPRX, and Gamida Cell GMDA. While Collegium sports a Zacks Rank #1 (Strong Buy), Catalyst and Gamida carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Collegium’searnings per share estimates have moved north from $3.66 to $5.43 for 2022 in the past 30 days. COLL has gained 14.5% so far this year.

Collegium delivered a negative earnings surprise of 57.55%, on average, in the last four quarters.

Catalyst’s earnings per share estimates have improved from 50 cents to 71 cents for 2022 in the past 30 days. CPRX has risen 14.3% so far this year.

Catalyst delivered an earnings surprise of 30.56%, on average, in the last four quarters.

Estimates for Gamida have narrowed from a loss of $1.83 to $1.35 for 2022 in the past 30 days. GMDA has risen 28.3% so far this year.

Gamida delivered a negative earnings surprise of 22.6%, on average, in the last four quarters.

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Gamida Cell Ltd. (GMDA) : Free Stock Analysis Report

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