Dj Vp Farnum Sells 4000 Of Theravance Biopharma Inc >Tbph

Theravance Biopharma TBPH reported third-quarter 2024 adjusted net loss of 6 cents per share, narrower than the Zacks Consensus Estimate of a loss of 10 cents. In the year-ago quarter, the company had incurred an adjusted loss of 1 cent per share.

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 26 cents per share in the third quarter compared with a loss of 17 cents in the year-ago quarter.

Total revenues came in at $16.9 million, beating the Zacks Consensus Estimate of $16 million. Revenues rose 8% year over year owing to increased collaboration revenues from partner Viatris VTRS.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

TBPH’s Q3 Results in Detail

The top line fully comprised Viatris’ collaboration revenues in relation to Yupelri (revefenacin) sales. Theravance and Viatris have collaborated for the development and commercialization of Yupelri, which is approved in the United States for the maintenance treatment of patients with chronic obstructive pulmonary disease.

Viatris and Theravance share U.S. profits and losses received in connection with the commercialization of Yupelri. While Viatris gets 65% of the profits, Theravance receives 35%. Viatris collaboration revenues include Theravance’s 35% share of net sales of Yupelri, as well as its proportionate amount of the total shared costs incurred by the two companies.

VTRS recognizes product sales from Yupelri and also owns a stake in Theravance.

Shares of Theravance have plunged 20.7% year to date compared with the industry’s decline of 0.1%.

Theravance Biopharma (TBPH) came out with a quarterly loss of $0.06 per share versus the Zacks Consensus Estimate of a loss of $0.10. This compares to loss of $0.01 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of 40%. A quarter ago, it was expected that this biopharmaceutical company would post a loss of $0.09 per share when it actually produced a loss of $0.13, delivering a surprise of -44.44%.

Over the last four quarters, the company has surpassed consensus EPS estimates three times.

Theravance Bio, which belongs to the Zacks Medical - Drugs industry, posted revenues of $16.87 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 4.71%. This compares to year-ago revenues of $15.69 million. The company has topped consensus revenue estimates two times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Theravance Bio shares have lost about 19.2% since the beginning of the year versus the S&P 500's gain of 25.8%.

What's Next for Theravance Bio?

While Theravance Bio has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Theravance Bio: favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.05 on $34.22 million in revenues for the coming quarter and -$0.45 on $79.17 million in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Drugs is currently in the top 27% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

ProPhase Labs, Inc. (PRPH), another stock in the same industry, has yet to report results for the quarter ended September 2024. The results are expected to be released on November 13.

This company is expected to post quarterly loss of $0.31 per share in its upcoming report, which represents a year-over-year change of -3.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

ProPhase Labs, Inc.'s revenues are expected to be $2.82 million, down 66.3% from the year-ago quarter.

Zacks Investment Research