GenVec, Inc. Earnings Analysis: Q3, 2015 By the Numbers

GenVec, Inc. reports financial results for the quarter ended September 30, 2015.

GenVec, Inc. has an earnings momentum score of 58.77 and has a relative valuation rating of OVERVALUED.

Earnings Momentum Score

Highlights

  • Summary numbers: Revenues of USD 0.19 million, Net Earnings of USD -1.51 million, and Earnings per Share (EPS) of USD -0.09.
  • Year-on-year change in operating cash flow of 36.25% is about the same as the change in earnings, likely no significant movement in accruals or reserves.
  • Earnings rose compared to same period last year, despite decline in operating and pretax margins.
  • Cash and Cash equivalents were down this period to 9.91 compared to 12.75 in the same period last year. Debt to Equity this period is 0 compared to last period.

The table below shows the preliminary results and recent trends for key metrics such as revenues and net income growth:

2014-09-30 2014-12-31 2015-03-31 2015-06-30 2015-09-30
Relevant Numbers (Quarterly)
Revenues (mil) 0.25 3.53 0.41 0.13 0.19
Revenue Growth (%YOY) -84.07 2333.79 -80.99 -1.55 -23.41
Earnings (mil) -1.6 1.72 -1.53 -1.87 -1.51
Earnings Growth (%YOY) 46.1 293.46 -58.77 -11.78 5.7
Net Margin (%) -633.33 48.63 -377.53 -1471.65 -779.79
EPS -0.1 0.1 -0.09 -0.11 -0.09
Return on Equity (%) -52.51 55.49 -48.41 -67.13 -62.16
Return on Assets (%) -43.46 46.74 -41.76 -57.8 -52.26

Access our Ratings and Scores for GenVec, Inc.

GNVC-US‘s change in revenue this period compared to the same period last year of -23.41% is almost the same as its change in earnings, and is about average among the announced results thus far in its peer group, suggesting that GNVC-US is holding onto its market share. Also, for comparison purposes, revenues changed by 51.97% and earnings by 19.48% compared to the immediate last period.

Revenues History
Earnings History

Despite a decline in operating (EBIT) margins as well as a decline in pretax margins, the company’s earnings rose.

EBIT Margin History

GNVC-US‘s change in operating cash flow of 36.25% compared to the same period last year is about the same as its change in earnings this period. Additionally, this change in operating cash flow is about average among its peer group. This suggests that the company did not use accruals or reserves to manage earnings this period, and that, all else being equal, the earnings number is sustainable.

Operating Cash Flow Growth Versus Earnings Growth

Access our Ratings and Scores for GenVec, Inc.

Company Profile

GenVec, Inc. is a clinical-stage biopharmaceutical company using differentiated, proprietary technologies to create superior therapeutics and vaccines. It is working with other companies and organizations such as Novartis, Merial, and the U.S. Government to support a portfolio of product programs that address the prevention and treatment of a number of significant human and animal health concerns. The company’s development programs address therapeutic areas such as hearing loss, balance disorders and cancer; as well as vaccines against infectious diseases, including respiratory syncytial virus, herpes simplex virus, dengue fever and malaria. GenVec was founded in December 1992 and is headquartered in Gaithersburg, MD.

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