Theravance Bio (TBPH) Up 2.5% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Theravance Biopharma (TBPH). Shares have added about 2.5% 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 catalysts.
Theravance's Q3 Loss Narrows, Revenues Beat Marginally
Theravance reported a third-quarter 2023 adjusted net loss of 1 cent per share, which was narrower than the Zacks Consensus Estimate of a loss of 10 cents.
The reported loss excludes share-based compensation expenses and non-cash interest expenses. In the year-ago quarter, the company had incurred a loss of 9 cents per share.
Revenues totaled $15.69 million, which marginally beat the Zacks Consensus Estimate of $15.59 million. The top line was up almost 26% year over year.
Quarter in Detail
The top line is almost wholly comprised of Viatris’ collaboration revenues in relation to Yupelri sales. Yupelri’s collaboration revenues beat our model estimate of $15.1 million.
R&D expenses (including share-based compensation) totaled $8.3 million, down almost 16.2% from the year-ago quarter’s level. SG&A expenses (including share-based compensation) declined by 1.2% year over year to $16.1 million.
As of Sep 30, 2023, Theravance had cash, cash equivalents and marketable securities worth $134 million compared with $167.5 million as of Jun 30, 2023.
2023 Guidance
Theravance continues to expect adjusted R&D expenses (excluding one-time restructuring expenses and share-based compensation) in the $35-$45 million range. In the fourth quarter of 2023, the company expects a slight increase in R&D expenses compared with the third quarter due to higher projected enrollment and site initiation for the CYPRESS study.
Adjusted SG&A expenses (excluding one-time restructuring expenses and share-based compensation) are projected between $45 million and $55 million. SG&A expenses in the fourth quarter of 2023 are expected to be relatively flat when compared with the third quarter.
The company expects to generate adjusted profitability in the fourth quarter of 2023.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
The consensus estimate has shifted 34.78% due to these changes.
VGM Scores
At this time, Theravance Bio has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. However, 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 C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. 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 belongs to the Zacks Medical - Drugs industry. Another stock from the same industry, United Therapeutics (UTHR), has gained 6.3% over the past month. More than a month has passed since the company reported results for the quarter ended September 2023.
United Therapeutics reported revenues of $609.4 million in the last reported quarter, representing a year-over-year change of +18.1%. EPS of $5.38 for the same period compares with $4.91 a year ago.
For the current quarter, United Therapeutics is expected to post earnings of $3.79 per share, indicating a change of +42% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.6% over the last 30 days.
United Therapeutics has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.
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Theravance Biopharma, Inc. (TBPH) : Free Stock Analysis Report
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