NYSE$EBS

Emergent BioSolutions Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Emergent BioSolutions reported financial results for Q3 2023, with revenues exceeding prior guidance, but disclosure of full earnings information was delayed due to an overstatement of state deferred tax liability.

Emergent BioSolutions reported Q3 2023 total revenues of $271 million, surpassing previous guidance. However, a pre-tax loss of $266 million was recorded, alongside an adjusted EBITDA of $20 million. The company is delaying the release of full earnings information and the filing of its 10-Q due to an identified overstatement of state deferred tax liability.

  • Total revenues for Q3 2023 reached $271 million, exceeding the prior guidance range.
  • The company reported a pre-tax loss of $266 million and an adjusted EBITDA of $20 million for Q3 2023.
  • Emergent is updating its full year 2023 guidance.
  • The FDA closed out its inspection of the Company’s Camden facility and issued a “close-out letter” of its Warning Letter issued in August 2022

Headline financials

Total Revenue

$271M

Previous: $240M+12.7%
EPS (adj)

-$0.87

Previous: -$1.27+31.5%
Adjusted EBITDA

$19.8M

Previous: -$15.2M+230.3%
Capital Expenditures

-$40.2M

Previous: -$92.2M+56.4%
Free Cash Flow

-$304M

Previous: -$168M-80.8%
Net Income

-$263M

Previous: -$75.7M-248.0%
Operating Income

-$242M

Previous: -$42M-476.4%
Gross Profit

$87.2M

Previous: $74M+17.8%
Cash & Equivalents

$87.8M

Previous: $241M-63.6%
Total Assets

$1.89B

Previous: $2.91B-34.9%
R&D Expense

$15.3M

No prior period
Stock-Based Comp

$4M

Previous: $11.2M-64.3%

Revenue & EPS history

Emergent BioSolutions · Revenue · Quarterly

$271M

Q3 2023+12.7%vs Q3 2022
Beat estimate in 9 of 14 quarters(64%)
ActualEstimate

Revenue by segment

Emergent BioSolutions · $108M total across 3 segments · Q3 2023

  • Other Products
    $50.1M+99.6%
  • Anthrax MCM
    $32.9M
  • Smallpox MCM
    $24.7M

Forward guidance

Emergent BioSolutions provided updated financial forecasts for the full year 2023, reflecting management's expectations based on current information and Q1-Q3 performance.

Tailwinds

  • Total Revenues — Consistent with prior guidance, due to ongoing strength in NARCAN® Nasal Spray
  • NARCAN® Nasal Spray — Revised, reflecting continued robust demand from the U.S. public interest channel, Canada, and launch of NARCAN® OTC.
  • Smallpox MCM — Revised, reflecting delivery of ACAM2000® and guidance on procurement of VIGIV and Tembexa®
  • CDMO — Revised, reflecting expectations for remainder of the year within prior guidance range.
  • The updated 2023 financial forecast as of November 8, 2023 reflects the following key considerations

Headwinds

  • Loss before income taxes$(726)-$(626)
  • Adjusted EBITDA (2)$(25) - $75
  • Adjusted Gross Margin % (2)32% - 38%
  • Anthrax MCM — Revised, reflecting delivery timing for short-term CYFENDUSTM volume following FDA-approval as procurement transitions from BARDA to the Strategic National Stockpile.
  • Other Products — Revised, reflecting reduced expectations for RSDL®.

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 2023

Historical avgQ3 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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