GenVec, Inc. :GNVC-US: Earnings Analysis: Q4, 2015 By the Numbers

GenVec, Inc. reports financial results for the quarter ended December 31, 2015.

We analyze the earnings along side the following peers of GenVec, Inc. – Emergent BioSolutions Inc., Pfizer Inc., Novavax, Inc., Novartis AG Sponsored ADR, Merck & Co., Inc., Sangamo BioSciences, Inc., Astrazeneca PLC Sponsored ADR, NanoViricides, Inc., Johnson & Johnson and Sanofi Sponsored ADR (EBS-US, PFE-US, NVAX-US, NVS-US, MRK-US, SGMO-US, AZN-US, NNVC-US, JNJ-US and SNY-US) that have also reported for this period.

Highlights

  • Summary numbers: Revenues of USD 0.16 million, Net Earnings of USD -1.64 million.
  • Year-on-year change in operating cash flow of -162.32% is about the same as the 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:

2014-12-31 2015-03-31 2015-06-30 2015-09-30 2015-12-31
Relevant Numbers (Quarterly)
Revenues (mil) 3.53 0.41 0.13 0.19 0.16
Revenue Growth (%YOY) 2333.79 -80.99 -1.55 -23.41 -95.47
Earnings (mil) 1.72 -1.53 -1.87 -1.51 -1.64
Earnings Growth (%YOY) 293.46 -58.77 -11.78 5.7 -195.69
Net Margin (%) 48.63 -377.53 -1471.65 -779.79 -1026.25
EPS 0.1 -0.09 -0.11 -0.09 -0.1
Return on Equity (%) 55.49 -48.41 -67.13 -62.16 -78.43
Return on Assets (%) 46.74 -41.76 -57.8 -52.26 -64.66

Access our Ratings and Scores for GenVec, Inc.


Market Share Versus Profits

Revenues History
Earnings History

GNVC-US‘s change in revenue this period compared to the same period last year of -95.47% 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 -17.10% and earnings by -9.10% compared to the immediate last period.

Revenues Growth Versus Earnings Growth


Cash Versus Earnings – Sustainable Performance?

GNVC-US‘s change in operating cash flow of -162.32% 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


Margins

The company’s decline in earnings has been influenced by the following factors: (1) Decline in operating margins (EBIT margins) from 48.40% to -1,028.13% and (2) one-time items that contributed to a decrease in pretax margins from 48.63% to -1,026.25%

EBIT Margin Versus PreTax Margin
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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