A month has gone by since the last earnings report for BioScrip (BIOS). Shares have lost about 50.4% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is BioScrip 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.
BioScrip Posts Loss in Q4, Margins Deteriorate
At the end of fourth-quarter 2018, BioScrip reported loss from continuing operations of 14 cents per share which was wider than the Zacks Consensus Estimate as well as the year-ago loss of 3 cents. At the end of 2018, reported loss from continuing operations, was 49 cents a share, narrower than the year-ago loss of 59 cents.
Net revenues of $183.6 million in the quarter rose 0.5% year over year. This figure missed the Zacks Consensus Estimate of $188 million. For the full year, net revenues came in at $708.9 million, showing a decline of 13.2% from a year ago.
For the fourth quarter, gross profit declined 11.5% to $62.1 million. Accordingly, gross margin contracted 460 bps to 33.9%. On account of a 16.7% increase in general and administrative costs, adjusted operating profit declined 16.9% year over year to $48.9 million. Hence, the adjusted operating margin contracted 559 bps to 26.7%.
BioScrip exited 2018 with cash and cash equivalents of $14.5 million, compared with $39.4 million at the end of 2017.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates. The consensus estimate has shifted -50% due to these changes.
At this time, BioScrip has a strong Growth Score of A, a grade with the same score on the momentum front. However, 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 A. If you aren't focused on one strategy, this score is the one you should be interested in.
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. It's no surprise BioScrip has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.
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