NYSE$EBS

Emergent BioSolutions Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Reported Q1 2023 total revenues above the prior guidance range, with a net loss and negative adjusted EBITDA.

Emergent BioSolutions reported Q1 2023 total revenues of $165 million, exceeding prior guidance. However, the company experienced a net loss of $183 million and an adjusted EBITDA of negative $101 million. The company updated its FY 2023 guidance and provided initial Q2 2023 guidance.

  • Received Notices of Intent from the U.S. government to procure medical countermeasures for smallpox and botulism.
  • Announced FDA approval of NARCAN® Nasal Spray 4 mg as an over-the-counter emergency treatment for opioid overdose.
  • Announced an agreement to sell the travel health business to Bavarian Nordic for up to $380 million.
  • Taking strategic actions to stabilize and strengthen core businesses.

Headline financials

Total Revenue

$165M

Previous: $308M-46.3%
EPS (adj)

-$3.17

Previous: $0.18-1861.1%
Adjusted EBITDA

-$101M

Previous: $36M-380.0%
Capital Expenditures

-$15.1M

Previous: -$32.2M+53.1%
Free Cash Flow

-$198M

Previous: -$35.9M-451.8%
Net Income

-$183M

Previous: -$3.7M-4845.9%
Operating Income

-$148M

Previous: $6.4M-2414.1%
Gross Profit

$3.5M

Previous: $142M-97.5%
Cash & Equivalents

$430M

Previous: $436M-1.3%
Total Assets

$2.95B

Previous: $2.78B+6.1%
Stock-Based Comp

$6.8M

Previous: $9.9M-31.3%

Revenue & EPS history

Emergent BioSolutions · Revenue · Quarterly

$165M

Q1 2023-46.3%vs Q1 2022
Beat estimate in 9 of 14 quarters(64%)
ActualEstimate

Revenue by segment

Emergent BioSolutions · $43M total across 3 segments · Q1 2023

  • Anthrax MCM
    $21.9M-78.9%
  • Other Products
    $13.9M-46.5%
  • Smallpox MCM
    $7.2M-50.0%

Forward guidance

Emergent BioSolutions provided updated financial forecast for the full year 2023 and Q2 2023.

Tailwinds

  • Total Revenues - Unchanged, reflecting the neutral impact of the overall updates across all sources of revenues.
  • Anthrax MCM - Unchanged, reflecting assumptions that have remained constant regarding procurement and delivery of the Company's related products to the U.S. and allied governments.
  • NARCAN - Revised, primarily reflecting robust demand from the U.S. PIP (public interest) channel and Canadian market.
  • Smallpox MCM - Unchanged, reflecting assumptions that have remained constant regarding procurement and delivery of the Company's related products to the U.S. and allied governments.
  • Adjusted Net Loss - Revised, reflecting the impact of higher NARCAN sales and the Travel Health business divestiture, offset by lower CDMO revenues and an increase in the tax valuation allowance.

Headwinds

  • Other Products - Revised, reflecting the removal of the Travel Health products, Vaxchora and Vivotif, following the anticipated completion of the divestiture of this business.
  • CDMO - Revised, reflecting the impact of recent changes to customer requirements for COVID-related products coupled with continued remediation costs and investments to improve quality and compliance across the Company's manufacturing network.
  • Adjusted EBITDA - Revised, reflecting the impact of higher NARCAN sales and the Travel Health business divestiture, offset by lower CDMO revenues.
  • Adjusted Gross Margin - Revised, reflecting the impact of overall revenue mix.
  • Net Loss - Revised

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 2023

Historical avgQ1 2023

-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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