GenVec, Inc. Earnings Q2, 2015

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

GenVec, Inc. (GNVC-US) is one of the first companies amongst its peer group to announce earnings for this period.

Highlights

  • Summary numbers: Revenues of USD 0.13 million, Net Earnings of USD -1.87 million, and Earnings per Share (EPS) of USD -0.11.
  • Change in operating cash flow of -163.08% compared to same quarter last year is about the same as change in earnings, likely no significant movement in accruals or reserves.
  • Narrowing of operating margins contributed to decline in earnings.

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

2014-06-30 2014-09-30 2014-12-31 2015-03-31 2015-06-30
Relevant Numbers (Quarterly)
Revenues (mil) 0.13 0.25 3.53 0.41 0.13
Revenue Growth (%YOY) -82.75 -84.07 2333.79 -80.99 -1.55
Earnings (mil) -1.67 -1.6 1.72 -1.53 -1.87
Earnings Growth (%YOY) 46.51 46.1 293.46 -58.77 -11.78
Net Margin (%) -1296.12 -633.33 48.63 -377.53 -1471.65
EPS -0.1 -0.1 0.1 -0.09 -0.11
Return on Equity (%) -48.82 -52.51 55.49 -48.41 -67.13
Return on Assets (%) -39.63 -43.46 46.74 -41.76 -57.8

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Market Share Versus Profits

Revenues History
Earnings History

Compared to the same period last year, GNVC-US‘s change in revenue was close to the amount of its change in earnings. It remains to be seen how the rest of its peer group’s results will turn out and if GNVC-US‘s performance is a sign of any major shift in the composition of market share in this sector. Also, for comparison purposes, revenues changed by -68.64% and earnings by -22.24% compared to the previous period.

Cash Versus Earnings – Sustainable Performance?

GNVC-US‘s year-on-year change in operating cash flow of -163.08% is around its change in earnings. This suggests that there are likely no significant movement in accruals or reserves for managing earnings this period.

Margins

The company’s decline in earnings has been influenced by the following factors: (1) Decline in operating margins (EBIT margins) from -1,299.22% to -1,476.38% and (2) one-time items that contributed to a decrease in pretax margins from -1,296.12% to -1,471.65%

EBIT Margin History
PreTax Margin History

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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