NYSE$EBS

Emergent BioSolutions Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Emergent BioSolutions reported financial results for the second quarter of 2023, with total revenues above prior guidance and strategic steps taken to reduce investment in the CDMO business.

Emergent BioSolutions reported Q2 2023 total revenues of $338 million, exceeding prior guidance, and an adjusted EBITDA of $56 million. The company updated its FY 2023 guidance and provided an initial Q3 2023 revenue forecast. Strategic steps were announced to reduce investment in its CDMO business.

  • Total revenues for Q2 2023 were reported at $338 million, surpassing the prior guidance range.
  • A net loss of $261 million and an adjusted EBITDA of $56 million were reported for Q2 2023.
  • The company updated its FY 2023 guidance and provided an initial Q3 2023 revenue forecast.
  • Strategic steps were announced to reduce investment in and de-emphasize focus on growth in its CDMO business.

Headline financials

Total Revenue

$338M

Previous: $243M+39.2%
EPS (adj)

-$1.06

Previous: -$0.86-23.3%
Adjusted EBITDA

$55.9M

Previous: -$28.8M+294.1%
Capital Expenditures

-$27.6M

Previous: -$64.3M+57.1%
Free Cash Flow

-$289M

Previous: -$121M-139.4%
Net Income

-$261M

Previous: -$56.4M-363.3%
Operating Income

-$293M

Previous: -$72M-306.8%
Gross Profit

$141M

Previous: $65.6M+114.5%
Cash & Equivalents

$88.6M

Previous: $358M-75.3%
Total Assets

$2.18B

Previous: $2.74B-20.3%
Stock-Based Comp

$8.3M

Previous: $12.3M-32.5%

Revenue & EPS history

Emergent BioSolutions · Revenue · Quarterly

$338M

Q2 2023+39.2%vs Q2 2022
Beat estimate in 9 of 14 quarters(64%)
ActualEstimate

Revenue by segment

Emergent BioSolutions · $168M total across 3 segments · Q2 2023

  • Smallpox MCM
    $124M
  • Other Products
    $23.2M-42.0%
  • Anthrax MCM
    $21.2M

Forward guidance

Emergent BioSolutions provided updated financial forecast for the full year 2023 and initial forecast for total revenues for Q3 2023.

Tailwinds

  • Total Revenues — Revised, reflecting ongoing strength in NARCAN, offset by reduced near term expectations across other products and services.
  • NARCAN — Revised, reflecting continued robust demand from the US Public Interest channel and Canada.

Headwinds

  • Anthrax MCM — Revised, reflecting reduced short-term CYFENDUS volume following FDA-approval as procurement transitions from BARDA to the Strategic National Stockpile.
  • Smallpox MCM — Revised, reflecting recent USG guidance that next procurement of TEMBEXA is deferred to future periods.
  • Other Products — Revised, reflecting reduced expectations for Trobigard.
  • CDMO — Revised, reflecting lower anticipated sales at the Camden site.
  • Adjusted Net Loss and Adjusted EBITDA — Revised, reflecting lower total revenues partially offset by the impact of cost actions announced on August 8, 2023.

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 Q2 2023

Historical avgQ2 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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