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A month has gone by since the last earnings report for Theravance Biopharma (TBPH). Shares have added about 2.2% 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 drivers.
Theravance’s Q2 Loss Wider Than Expected, Revenues Rise Y/Y
Theravance reported a second-quarter 2024 adjusted net loss of 13 cents per share, which was wider than the Zacks Consensus Estimate of a loss of 9 cents. But the figure was in line with the year-ago quarter’s actual.
The reported loss excludes share-based compensation expense, non-cash impairment of long-lived assets, income tax expense and non-cash interest expense. Including these items, the company reported a loss of 34 cents per share in the second quarter.
Total revenues came in at $14.3 million, missing the Zacks Consensus Estimate of $16 million. Revenues, however, rose 4.4% year over year owing to increased collaboration revenues from partner Viatris.
Quarter in Detail
The top line fully comprised Viatris’ collaboration revenues related to Yupelri sales.
Research and development expenses (excluding share-based compensation) totaled $8.8 million, up almost 17.3% from the year-ago quarter’s level.
Selling, general and administrative expenses (excluding share-based compensation) declined around 13.4% year over year to $12.9 million.
As of Jun 30, 2024, Theravance had cash, cash equivalents and marketable securities worth $96.1 million compared with $100 million as of Mar 31, 2024.
2024 Guidance
Theravance continues to expect adjusted R&D expenses (excluding share-based compensation) in the $30-$36 million range. Adjusted SG&A expenses (excluding share-based compensation) are projected between $45 million and $55 million.
The company continues to expect share-based compensation expenses of $18-$22 million in 2024.
For the remainder of 2024, TBPH now expects levels of both adjusted losses and cash burn to be the same as the first half of 2024. Earlier, the company expected to achieve breakeven in the second half of 2024 while expecting limited cash burn for 2024.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -39.71% due to these changes.
VGM Scores
Currently, Theravance Bio has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for this investment strategy.