NYSE$EBS

Emergent BioSolutions Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Emergent BioSolutions reported financial results for Q1 2020.

Emergent BioSolutions reported total revenues of $192.5 million, a slight increase over 2019, driven by increases in CDMO and contracts and grants revenues offsetting a decline in product sales. The company recorded a net loss of $12.5 million, or $0.24 per diluted share, compared to a net loss of $26.0 million in 2019. Adjusted EBITDA was $15.3 million, compared to $8.4 million in 2019.

  • Reaffirmed full year 2020 financial forecast.
  • Signed a CDMO agreement with Johnson & Johnson valued at $135 million.
  • Initiated development of two investigational plasma-derived therapies.
  • Received EMA and FDA agreement on development plan for CHIKV VLP vaccine candidate.

Headline financials

Total Revenue

$193M

Previous: $191M+1.0%
EPS (adj)

$0.01

Previous: -$0.13+107.7%
Adjusted EBITDA

$15.3M

Previous: $8.4M+82.1%
Capital Expenditures

-$24.2M

Previous: -$21.4M-13.1%
Free Cash Flow

-$36.7M

Previous: -$47.4M+22.6%
Net Income

-$12.5M

Previous: -$26M+51.9%
Operating Income

-$11.6M

Previous: -$27.2M+57.4%
Gross Profit

$116M

Previous: $98.8M+17.0%
Cash & Equivalents

$182M

Previous: $137M+32.3%
Total Assets

$2.28B

Previous: $2.15B+5.8%
Stock-Based Comp

$6.6M

Previous: $6.8M-2.9%

Revenue & EPS history

Emergent BioSolutions · Revenue · Quarterly

$193M

Q1 2020+1%vs Q1 2019
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Emergent BioSolutions · $119M total across 3 segments · Q1 2020

  • Naloxone
    $72.2M+10.2%
  • Other Products
    $24.1M-20.2%
  • Contracts and Grants
    $22.6M

Forward guidance

The Company reaffirms its expectation of the following forecasted financial metrics previously provided on February 20, 2020.

Tailwinds

  • Full year total revenues are expected to be between $1,175 million and $1,275 million.
  • Adjusted net income is expected to be between $160 million and $210 million.
  • Adjusted EBITDA is expected to be between $300 million and $360 million.
  • NARCAN Nasal Spray sales are projected to be $285 million - $315 million.
  • Anthrax Vaccines sales are projected to be $270 million - $300 million.

Headwinds

  • The outlook for 2020 does not include estimates for potential new corporate development or other M&A transactions.
  • ACAM2000 sales are projected to be $180 million - $200 million.
  • The financial forecast includes anticipated deliveries of raxibacumab to the Strategic National Stockpile (SNS) under the anticipated follow-on procurement contract with HHS.
  • Continued investment in internally funded development projects most notably the anticipated Phase 3 studies for the CHIKV VLP and FLU-IGIV product candidates as well as the Phase 1/2 study for COVID-EIG, among other R&D projects.
  • The Q2 2020, the Company forecast for total revenues is $270 million - $300 million.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

-0.5%

Avg return

Earnings day

-1.0%

Avg return

5 days after

-1.0%

Avg return

30 days after

47%

30 / 64 earnings

Positive

+75.5%

Q1 2024

Best reaction

-41.2%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.0%+13.3%+13.5%
Q4 2025-27.1%-21.0%-28.6%
Q3 2025+36.9%+7.3%+18.8%
Q1 2025+35.0%+24.1%+39.9%
Q4 2024-6.4%-15.5%-29.3%
Q3 2024+22.8%+33.6%+0.6%
Q2 2024-41.2%-27.1%-21.5%
Q1 2024+75.5%+111.7%+203.2%
Q4 2023-18.8%-17.9%-32.8%
Q3 2023-8.9%-22.9%+5.5%
Q2 2023-20.0%-25.9%-40.9%
Q1 2023+18.5%+0.7%-8.0%
Q4 2022-9.7%-15.0%-31.8%
Q3 2022-36.7%-22.5%-38.6%
Q2 2022-12.6%-8.6%-30.7%
Q1 2022-11.2%-8.5%-3.4%
Q4 2021-6.7%-2.2%+4.1%
Q3 2021-37.0%-33.3%-20.3%
Q2 2021+1.1%-2.7%-1.5%
Q1 2021-1.7%-4.8%-2.3%
Q4 2020-15.9%-23.7%-25.7%
Q3 2020-6.1%-10.9%-15.8%
Q2 2020+18.1%+30.1%+24.8%
Q1 2020+6.4%+7.5%+12.9%
Q4 2019+2.1%-7.2%-23.6%
Q3 2019-5.4%-7.6%-5.4%
Q2 2019+1.5%+0.7%-0.8%
Q1 2019-8.0%-9.2%-23.7%
Q4 2018-2.8%-11.0%-25.8%
Q3 2018+6.0%+12.6%+19.0%
Q2 2018+3.9%+0.2%+13.8%
Q1 2018-4.0%-4.9%+1.4%
Q4 2017-3.0%+0.6%+6.6%
Q3 2017+7.0%-3.6%+9.1%
Q2 2017-1.1%-1.2%+4.2%
Q1 2017-3.5%+3.2%+5.6%
Q4 2016+0.1%+4.9%-3.7%
Q3 2016+9.8%+22.0%+4.7%
Q2 2016-2.1%-2.6%-11.6%
Q1 2016+0.9%
Q4 2015-3.8%
Q3 2015+2.5%
Q2 2015+5.2%
Q1 2015-2.0%
Q4 2014-3.6%
Q3 2014+7.6%
Q2 2014-2.6%
Q1 2014-10.5%
Q4 2013+9.1%
Q3 2013+9.1%
Q2 2013+1.6%
Q1 2013-5.0%
Q4 2012+1.8%
Q3 2012+8.4%
Q2 2012+1.1%
Q1 2012+4.9%
Q4 2011+4.6%
Q1 2011+4.6%
Q4 2009+8.1%
Q3 2011-5.3%
Q3 2010-5.3%
Q2 2010-8.2%
Q2 2011-8.2%
Q1 2010-1.5%

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