Emergent BioSolutions (NYSE: EBS) stock soared over 70% in intraday trading Thursday following the release of first-quarter financial results. The company also announced operational adjustments to strengthen its financial standing.
Emergent BioSolutions (EBS) reported quarterly earnings of 59 cents per share, surpassing the analyst consensus estimate of losses of 83 cents by 171.08%.
Quarterly sales came in at $300.4 million, up 33.81% from the analyst consensus estimate of $224.5 million. This figure marks an 82.84% increase from the same period last year.
In addition, Emergent announced the next phase of its new operational plan aimed at improving performance and profitability. The plan involves consolidating operations, closing several manufacturing facilities, and restructuring the enterprise workforce.
Emergent will shut down its Baltimore-Bayview Drug Substance manufacturing facility and the Rockville, Maryland Drug Product facility as part of the operational restructuring. The company also plans to reduce its workforce by 300 employees across all areas and eliminate about 85 vacant positions. The company expects these strategic moves to yield around $80 million in savings once fully implemented.
However, the restructuring plan will incur costs estimated to be between $18 million and $21 million, primarily in the second half of 2024. Despite these expenses, Emergent is confident in the long-term benefits of the restructuring efforts.
Furthermore, Emergent raised its 2024 revenue guidance to between $1 billion and $1.1 billion.
Emergent BioSolutions (NYSE: EBS) Stock Reaction
EBS stock surged 70.98% to close at $3.30 on Thursday. Its value has risen by 69.23% this week. Trading activity has witnessed 151,130,795 (151.13 million) shares changing hands, well above the average daily volume of 3.06 million.
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