Should ADMA Biologics Stock Be in Your Portfolio Pre-Q1 Earnings?

ADMA Biologics ADMA is scheduled to report first-quarter 2025 results on May 7, after market close.The Zacks Consensus Estimate for sales and earnings is pegged at $119.1 million and 16 cents per share, respectively. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)Earnings estimate for 2025 has increased to 71 cents from 69 cents per share over the past 60 days, and the same for 2026 has improved to 93 cents from 87 cents.Image Source: Zacks Investment ResearchADMA’s Earnings Surprise HistoryADMA has a mixed track record. Its earnings beat estimates in three of the trailing four quarters and missed in the remaining one, delivering an average surprise of 32.8%. However, in the previously reported quarter, the company’s earnings missed estimates by 6.67%.Image Source: Zacks Investment ResearchWhat Our Model Predicts for ADMAPer our proven model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.Earnings ESP for ADMA is 0.00%. The company currently carries a Zacks Rank #2. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.Factors Influencing ADMA’s Q1 ResultsADMA Biologics markets plasma-derived biologics for the treatment of immune deficiencies and the prevention of certain infectious diseases.The company’s top line currently comprises sales of three FDA-approved products, which are Bivigam (an Intravenous Immune Globulin [IVIG] product to treat primary humoral immunodeficiency), Asceniv (to treat primary immunodeficiency disease or PIDD) and Nabi-HB (to treat and provide enhanced immunity against the hepatitis B virus).Asceniv, its lead product, is a plasma-derived IVIG that contains naturally occurring polyclonal antibodies.These antibodies are proteins used by the body’s immune system to neutralize microbes, such as bacteria and viruses, and prevent infection and disease.Asceniv is indicated for the treatment of PIDD or inborn errors of immunity in adults and adolescents. It is manufactured using ADMA’s unique, patented plasma donor screening methodology and tailored plasma pooling design, which blends normal source plasma with respiratory syncytial virus plasma obtained from donors tested using the company’s proprietary microneutralization assay.Increased sales of Asceniv have likely fueled the top line in the first quarter. Gross margin has also likely improved due to a significantly more favorable mix of high margin immunoglobulin (IG) sales.As in the previous quarter, R&D expenses might have declined in the first quarter, while SG&A expenses must have increased.Increased revenues have likely boosted the bottom line as well.ADMA’s Price Performance and ValuationShares of ADMA have surged 38.8% year to date against the industry’s decline of 2.7%. The stock has outperformed the sector and the S&P 500 in this timeframe.Image Source: Zacks Investment ResearchFrom a valuation perspective, ADMA is expensive at this moment. Going by the price/sales ratio, ADMA’s shares currently trade at 10.59x forward sales, higher than its mean of 3.32x and the industry’s 1.76x.Image Source: Zacks Investment ResearchInvestment ThesisAsceniv’s strong sales growth is driving the top line. Demand was strong in 2024, with further growth and penetration expected in 2025. As demand grows and long-term high-titer plasma supply contracts ramp up, ADMA anticipates accelerating new patient starts for Asceniv and penetration in existing institutions in 2025.ADMA recently entered into third-party, high-titer plasma supply contracts, which are expected to significantly increase access to raw material plasma used to produce Asceniv. Consequently, these long-term agreements allow ADMA to source high-titer plasma from approximately 250 collection centers, reflecting a five-fold increase in total collection capacity. Management anticipated these supply agreements to position ADMA to potentially achieve $1 billion in total annual revenues before 2030, with significant growth potential in the 2030s.The recent FDA approval of its innovative yield enhancement production process supports revenue growth and margin expansion opportunities.Concurrent with its fourth-quarter results, ADMA upped its financial targets. ADMA now expects to generate revenues of more than $490 million in 2025 and $605 million in 2026 (previous guidance: more than $485 million in 2025 and $600 million in 2026). Net income is projected to exceed $175 million in 2025 and $235 million in 2026 (up from the prior guidance of more than $170 million in 2025 and $230 million in 2026).Invest in ADMA StockADMA Biologics, which competes with Takeda TAK and Grifols GRFS in the U.S. market for plasma-derived products, is poised to perform well in the upcoming quarters. Incremental additional penetration of Asceniv should accelerate near-term revenue growth.The targeted market has significant growth potential. ADMA should continue to grow substantially in the underserved, immune-compromised and co-morbid patient population despite the availability of standard-of-care therapy.Large biotech companies are generally considered safe havens for investors interested in this sector. Irrespective of how the company fares in the first quarter, ADMA makes for a good investment option and we recommend the stock to prospective investors.You can see the complete list of today’s Zacks #1 Rank stocks here. Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Grifols, S.A. (GRFS): Free Stock Analysis Report ADMA Biologics Inc (ADMA): Free Stock Analysis Report Takeda Pharmaceutical Co. (TAK): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks