NYSE$EBS

Emergent BioSolutions Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Emergent BioSolutions reported strong Q3 2020 performance with increased revenues and adjusted EBITDA.

Emergent BioSolutions reported a 24% increase in total revenues for Q3 2020, driven by growth in contract development and manufacturing services. Net income decreased slightly, but adjusted net income and adjusted EBITDA saw significant increases. The company updated its full year 2020 guidance, refining revenue ranges and raising profitability ranges.

  • Total revenues increased by 24% to $385.2 million compared to Q3 2019.
  • Adjusted EBITDA increased by 58% to $168.1 million compared to Q3 2019.
  • The company secured approximately $60 million in new business and existing project extensions across its CDMO portfolio.
  • FDA approved the shelf life extension of NARCAN® Nasal Spray from 24 months to 36 months.

Headline financials

Total Revenue

$385M

Previous: $312M+23.5%
EPS (adj)

$2.19

Previous: $1.21+81.0%
Adjusted EBITDA

$168M

Previous: $106M+58.0%
Capital Expenditures

-$105M

Previous: -$50.8M-106.7%
Free Cash Flow

-$65.5M

Previous: -$7.6M-761.8%
Net Income

$39.5M

Previous: $43.2M-8.6%
Operating Income

$61.3M

Previous: $70.7M-13.3%
Gross Profit

$236M

Previous: $204M+15.9%
Cash & Equivalents

$415M

Previous: $139M+198.1%
Total Assets

$2.62B

Previous: $2.33B+12.1%
Stock-Based Comp

$10M

Previous: $6.1M+63.9%

Revenue & EPS history

Emergent BioSolutions · Revenue · Quarterly

$385M

Q3 2020+23.5%vs Q3 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Emergent BioSolutions · $139M total across 4 segments · Q3 2020

  • Anthrax MCM
    $73.9M+83.4%
  • Other Products
    $38.5M+33.7%
  • Contracts and Grants
    $25.9M
  • Smallpox MCM
    $1M-99.1%

Forward guidance

Emergent BioSolutions updated its full year 2020 financial forecast, refining revenue ranges and raising profitability ranges.

Tailwinds

  • Year over year improvement in gross margin of 400 - 600 basis points driven by improved product mix and increased contribution from the Company's CDMO business
  • No generic competition in 2020 for NARCAN® Nasal Spray.

Headwinds

  • The previously announced delay into 2021 of the launch of the Phase 3 clinical study for CHIKV-VLP, the Company's chikungunya virus virus-like particle vaccine, due to the timing of certain operational factors
  • The continued deferral into 2021 of a follow-on procurement contract with the U.S. government for raxibacumab, the Company's FDA-approved anthrax monoclonal antibody therapeutic, due to the impact of the prioritization of Operation Warp Speed on the Company's technology transfer activities for the product
  • Continued challenges through the end of 2020 in the Company's travel health business and revenues associated with Vaxchora® (Cholera Vaccine, Live, Oral) and Vivotif® (Typhoid Vaccine Live Oral Ty21a)

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 Q3 2020

Historical avgQ3 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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