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

Core Viewpoint - ADMA Biologics is expected to report first-quarter 2025 results on May 7, with sales estimated at $119.1 million and earnings at 16 cents per share, reflecting a positive trend in earnings estimates for 2025 and 2026 [1][2][16]. Financial Performance - The earnings estimate for 2025 has increased to 71 cents from 69 cents per share over the past 60 days, while the estimate for 2026 has improved to 93 cents from 87 cents [1][2]. - ADMA has a mixed earnings surprise history, beating estimates in three of the last four quarters with an average surprise of 32.8%, although it missed estimates by 6.67% in the most recent quarter [2][3]. Product Overview - ADMA markets plasma-derived biologics, including three FDA-approved products: Bivigam, Asceniv, and Nabi-HB, aimed at treating immune deficiencies and preventing infectious diseases [6][17]. - Asceniv, the lead product, is a plasma-derived IVIG that contains polyclonal antibodies to neutralize microbes and prevent infections [7][8]. Sales and Growth Drivers - Increased sales of Asceniv are expected to drive revenue growth in the first quarter, supported by a favorable mix of high-margin immunoglobulin sales [9]. - ADMA anticipates significant growth in revenues, projecting over $490 million in 2025 and $605 million in 2026, with net income expected to exceed $175 million in 2025 [16]. Market Position and Strategy - ADMA has entered into long-term high-titer plasma supply contracts, increasing access to raw materials and potentially achieving $1 billion in annual revenues by 2030 [14]. - The company competes with Takeda and Grifols in the U.S. plasma-derived products market and is positioned for substantial growth in the underserved immune-compromised patient population [17][18]. Valuation - ADMA's shares currently trade at a price/sales ratio of 10.59x forward sales, significantly higher than its historical mean of 3.32x and the industry average of 1.76x, indicating a premium valuation [12]. Price Performance - ADMA's stock has surged 38.8% year-to-date, outperforming the industry, which has declined by 2.7% [10].