Theravance Earnings: Here’s Why Investors are Not Excited Now

Theravance Inc. (NASDAQ:THRX) had a loss and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 0%.

Theravance Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $-0.33 in the quarter versus EPS of $-0.45 in the year-earlier quarter.

Revenue: Rose 8.21% to $5.8 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Theravance Inc. reported adjusted EPS loss of $-0.33 per share. By that measure, the company beat the mean analyst estimate of $-0.42. It beat the average revenue estimate of $3.88 million.

Quoting Management:“Theravance made significant progress in 2012, particularly in our lead respiratory programs partnered with GSK,” said Rick E Winningham, Chief Executive Officer. “Looking forward, 2013 will be more significant for Theravance with potential regulatory events for RELVAR™/BREO™, ANORO™, and VIBATIV®. In addition, we continue to progress our internal programs, including Phase 2 studies in fibromyalgia and ADHD with TD-9855, a Phase 2b study in COPD with TD-4208, and a Phase 2 study in gastroparesis with velusetrag. Overall, we are well positioned both strategically and financially.”

Key Stats (on next page)…

Revenue increased 305.59% from $1.43 million in the previous quarter. EPS increased to $-0.33 in the quarter versus EPS of $-0.37 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a loss of $0.35 to a loss $0.31. For the current year, the average estimate has moved up from a loss of $0.27 to a loss of $0.21 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)