It has been about a month since the last earnings report for Emergent Biosolutions, Inc. (NYSE:EBS) . Shares have added about 3.9% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Emergent First Quarter Earnings Beat, Revenue Miss Estimates
Emergent BioSolutions reported earnings of $0.29 per share in the first quarter of 2017, which surpassed both the Zacks Consensus Estimate of $0.27. Earnings also increased from the year ago figure of $0.28.
Revenues in the reported quarter increased 13% from the year-ago period to $116.9 million, primarily due increase in other product sales and contract manufacturing revenues. The increase in contract manufacturing revenues reflects an increase in fill/finish services.
However, revenues missed the Zacks Consensus Estimate of $122 million.
Quarter in Detail
Total product sales were up 29% to $82 million from the year-ago period, mainly due to higher Other Product sales.
Contracts, grants and collaboration revenues decreased 45% year over year to $17.3 million. This was primarily due to the timing of the ongoing development activities leading to a reduction of development funding under ongoing programs, as well as activities under contract in 2016, that were concluded prior to the start of the 2017.
Contract manufacturing revenues were $17.6 million, significantly higher than the year ago figure of $7.6 million. The increase was primarily driven by the timing of fill/finish services.
Research and development expenses were $20.5 million, down 21.5% from the year-ago quarter. Selling, general and administrative expenses increased 11% to $35.2 million. The increase was primarily due to costs associated with the Aptevo spin-off.
2017 Guidance
Emergent continues to expect revenues in the range of $500–$530 million in 2017, including BioThrax sales of $265–$280 million.
For the second quarter of 2017, the company expects revenue in the range of $100–$115 million.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last one month period as none of them issued any earnings estimate revisions.
Emergent Biosolutions, Inc. Price and Consensus
VGM Scores
At this time, Emergent Biosolutions' stock has a great Growth Score of 'A', though it is lagging a bit on the momentum front with a 'C'. The stock was allocated a grade of 'A' on the value side, putting it in the top quintile 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.
Based on our scores, the stock is equally suitable for value and growth investors.
Outlook
Notably, the stock has a Zacks Rank #3 (Hold). We expect in-line returns from the stock in the next few months.
Emergent Biosolutions, Inc. (EBS): Free Stock Analysis Report
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