We expect investors to focus on Agenus Inc.’s AGEN progress with the development of its pipeline candidates, including its lead program — botensilimab, when it reports third-quarter 2022 results on Nov 8, before market open.
AGEN’s surprise record has been mixed so far, as its earnings surpassed expectations in three of the trailing four quarters and missed the same on the remaining occasion. It has a trailing four-quarter earnings surprise of 12.02%, on average. In the last reported quarter, Agenus delivered an earnings surprise of 26.09%.
Shares of Agenus have lost 18.3% this year compared with the industry’s decline of 24.5%.
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Let’s see how things have shaped up for the quarter to be reported.
Factors at Play
Agenus’ revenues in the third quarter are likely to have been driven by the company’s collaboration agreements, milestones earned and revenue related to non-cash royalties earned.
AGEN’s top line comprises revenues related to royalty sales milestones, revenues related to non-cash royalties, research and development revenues, and other revenues. Revenues increased around 95% in the last reported quarter, a trend likely to have continued in the third quarter.
Per the second quarter earnings release, the company expected to receive payments in the second half of 2022 on royalties owed on Shingrix sales. It also achieved sales-based milestone related to QS-21 STIMULON in the said quarter. These are likely to have aided AGEN’s top line in the quarter under review.
The company has been developing its lead candidate, botensilimab, for treating various types of cancer indications. Phase II studies for botensilimab are expected to begin in microsatellite stable colorectal cancer (MCC CRC), melanoma and pancreatic cancer later in 2022.
AGEN has been working closely with regulatory bodies to speed up the development of botensilimab in pursuit of global registrations across multiple cancer indications.
We expect management to provide further updates on botensilimab at the upcoming investors’ call.
The activities related to the development of its pipeline candidate across various clinical studies are likely to have escalated AGEN’s operating expenses in the third quarter.
Our proven model does not conclusively predict an earnings beat for Agenus this time around. 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, which is not the case here, as you will see below. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Earnings ESP: Agenus’ Earnings ESP is 0.00% as the Most Accurate Estimate and the Zacks Consensus Estimate currently are both pegged at a loss of 18 cents per share.
Zacks Rank: Agenus currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Agenus Inc. Price and EPS Surprise
Agenus Inc. price-eps-surprise | Agenus Inc. Quote
Stocks to Consider
AVEO Pharmaceuticals AVEO has an Earnings ESP of +8.16% and a Zacks Rank #3.
AVEO Pharmaceuticals' stock has surged 215.1% so far this year. AVEO topped earnings estimates in three of the last four quarters and missed the same on the other occasion. AVEO has a four-quarter earnings surprise of 13.10%, on average.
Acadia ACAD has an Earnings ESP of +6.47% and a Zacks Rank #3.
Acadia’s stock has lost 32.7% so far this year. ACAD topped earnings estimates in two of the last four quarters and missed the same on the other two occasions. ACAD has a four-quarter earnings surprise of 6.83%, on average. ACAD is scheduled to release its third-quarter 2022 results on Nov 2.
ImmunoGen IMGN has an Earnings ESP of +4.39% and a Zacks Rank #3.
The ImmunoGen stock has declined 18.4% so far this year. IMGN topped earnings estimates in three of the last four quarters and missed the same on the other occasion. ImmunoGen has a four-quarter earnings surprise of 13.53%, on average. IMGN is scheduled to release its third-quarter 2022 results on Nov 4.
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