China Biologic Products (CBPO) Tops Q3 EPS by 52c, Revenues Beat

China Biologic Products (NASDAQ: CBPO) reported Q3 EPS of $1.40, $0.52 better than the analyst estimate of $0.88. Revenue for the quarter came in at $136.1 million versus the consensus estimate of $127 million.

Third Quarter 2019 Financial Highlights

• Total sales in the third quarter of 2019 increased by 17.5% in RMB terms and 14.3% in USD terms to $136.1 million from $119.1 million in the same quarter of 2018.
• Gross profit increased by 9.1% to $88.6 million from $81.2 million in the same quarter of 2018. Gross margin decreased to 65.1% from 68.2% in the same quarter of 2018.
• Income from operations increased by 84.7% to $53.0 million from $28.7 million in the same quarter of 2018. Operating margin increased to 38.9% from 24.1% in the same quarter of 2018.
• Non-GAAP adjusted income from operations increased by 64.1% in RMB terms and 59.7% in USD terms to $61.5 million from $38.5 million in the same quarter of 2018.
• Net income attributable to the Company increased by 42.9% to $47.0 million from $32.9 million in the same quarter of 2018. Diluted net earnings per share increased to $1.21 compared to $0.94 in the same quarter of 2018.
• Non-GAAP adjusted net income attributable to the Company increased by 66.0% in RMB terms and 61.4% in USD terms to $54.4 million from $33.7 million in the same quarter of 2018. Non-GAAP adjusted net earnings per diluted share increased to $1.40 from $0.96 in the same quarter of 2018.

"We were pleased to achieve another quarter of strong financial results, driven primarily by the higher-than-expected IVIG sales in the distributor channel following the successful reorganization of our sales and marketing team," said Joseph Chow, Chairman and CEO of China Biologic. "Looking into the fourth quarter and beyond, our new sales and marketing talent will be dedicated to the further pursuit of medical marketing strategies to enhance doctors' awareness about the benefits of IVIG, PCC, and other coagulation factor products in treating chronic diseases. As a result of stronger than expected albumin sales for the first nine months of the year combined with this quarter's rebound in IVIG sales, we are raising guidance for the full year 2019."

Financial Outlook

For the full year of 2019, the Company is raising its full year forecast of growth of non-GAAP adjusted income from operations to 11% to 13% from 4% to 6% and non-GAAP adjusted net income growth to 16% to 18% from 4% to 6% in RMB terms over the Company's full year 2018 financial results. The raising of guidance was primarily due to the combined effect of stronger than expected albumin sales for the first nine months of the year, a rebound in IVIG sales in the third quarter, and higher than anticipated interest income for the full year.

For earnings history and earnings-related data on China Biologic Products (CBPO) click here.

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