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Why Is Theravance Bio (TBPH) Down 7.9% Since Last Earnings Report?

Zacks Equity Research
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A month has gone by since the last earnings report for Theravance Biopharma (TBPH). Shares have lost about 7.9% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Theravance Bio 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.

Theravance Q4 Loss Narrows, Revenues Beat Estimates

Theravance Biopharma incurred a loss of 92 cents per share in fourth-quarter 2018, narrower than the Zacks Consensus Estimate of a loss of $1.12 and the year-ago loss of $1.64.

Total revenues in the quarter skyrocketed 248.5% year over year to $15.7 million, mainly on the back of an upfront payment received from J&J in relation to a joint development agreement for Theravance’s pan-Janus kinase inhibitor, TD-1473. Moreover, the top line surpassed the Zacks Consensus Estimate of $12.3 million.

Quarterly Details

Vibativ generated U.S. revenues of $2.4 million in the fourth quarter, down 41.5% from the year-ago period's figure. Revenues from collaborations, primarily related to the collaboration with J&J for TD-1473, were $10 million compared with $0.39 million in the year-earlier quarter. Profit sharing revenues related to Yupelri was $3.3 million in the quarter.

Research and development expenses were $52.3 million, up 2.3% from the year-ago quarter, primarily due to higher costs to support key programs.

Selling, general & administrative expenses decreased 13.5% to $25.5 million, due to lower expenses regarding share-based compensation.

2019 Outlook

For 2019, Theravance anticipates operating loss, excluding non-cash share-based compensation, to be $210-$230 million.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates flatlined during the past month. The consensus estimate has shifted -6.4% due to these changes.

VGM Scores

Currently, Theravance Bio has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. However, the stock was allocated a grade of F on the value side, putting it in the lowest quintile 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

Theravance Bio has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.



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