Emergent BioSolutions Earnings Preview

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Emergent BioSolutions (NYS: EBS) will look to avoid missing estimates for the third consecutive quarter when its earnings are released. The company will unveil its latest earnings on Thursday, March 8. Emergent BioSolutions is a biopharmaceutical company, focused on the development, manufacture, and commercialization of vaccine and immune-related therapeutics that assist the body's immune system to prevent or treat disease.

What analysts say:

  • Buy, sell, or hold?: Analysts are very bullish on this stock, unanimously backing it as a buy. Analysts haven't adjusted their rating of Emergent BioSolutions for the past three months.
  • Revenue forecasts: On average, analysts predict $109.3 million in revenue this quarter. That would represent a rise of 5.9% from the year-ago quarter.
  • Wall Street earnings expectations: The average analyst estimate is earnings of $0.72 per share. Estimates range from $0.68 to $0.81.

What our community says:
CAPS All-Stars are strongly supporting the stock, with 97.6% giving it an "outperform" rating. The greater community is in line with the All-Stars, as 96.4% give it a rating of "outperform." Emergent BioSolutions has a bullish CAPS rating of five out of five stars that is about on par with the Fool community assessment.

Management:
The company's gross margin shrank by 2.6 percentage points in the last quarter. Revenue fell 20.6% while cost of sales fell 7.2% to $10.7 million from a year earlier.

Now let's get some insight into how efficient management is at running the business. Margins illustrate how efficiently a company captures portions of sales dollars. The company's operating margins have dropped year-over-year for the last three quarters. Operating margins reflect the total sales revenue retained after costs. See how Emergent BioSolutions has been doing for the last four quarters:

Quarter

Q3

Q2

Q1

Q4

Gross Margin

81.8%

81.8%

94.2%

83.5%

Operating Margin

2.4%

22.9%

(191.6%)

33.9%

Net Margin

2.6%

16.1%

(115.5%)

25.4%

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Motley Fool newsletter services have recommended buying shares of Emergent BioSolutions.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Earnings estimates provided by Zacks.

At the time this article was published

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