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Achillion (ACHN) Down 6% Since Earnings Report: Can It Rebound?

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A month has gone by since the last earnings report for Achillion Pharmaceuticals, Inc. ACHN. Shares have lost about 6% in that time frame.

Will the recent negative trend continue leading up to its next earnings release, or is ACHN due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

Achillion Reports Wider Than Expected First Quarter Loss

Achillion reported a loss of 15 cents per share for the first quarter of 2018, same as the year-ago loss but wider than the Zacks Consensus Estimate of a loss of 14 cents.

The company generated no revenues in the reported quarter.

Research and development (R&D) expenses decreased nearly 4.8% from the year-ago period to $14.6 million. The decrease was due to decreased stock-based compensation, lower personnel costs as the February restructuring resulted in reduced number of employees and lower manufacturing and formulation expenses for ACH-5228. This was partially offset by increased costs related to clinical studies of ACH-4471 and ACH-5228 and preclinical costs of ACH-5548.

General and administrative (G&A) expenses decreased 5.9% year over year to $5.3 million due to lower legal and consulting fees.

How Have Estimates Been Moving Since Then?

Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.

Achillion Pharmaceuticals, Inc. Price and Consensus

 

Achillion Pharmaceuticals, Inc. Price and Consensus | Achillion Pharmaceuticals, Inc. Quote

VGM Scores

At this time, ACHN has a poor Growth Score of F, however its Momentum is doing a lot better with a B. The stock was also allocated a grade of F on the value side, putting it in the bottom 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

The company's stock is suitable solely for momentum based on our styles scores.

Outlook

ACHN has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.


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