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A month has gone by since the last earnings report for Allogene Therapeutics (ALLO). Shares have added about 8.4% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Allogene Therapeutics due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Allogene’s Q3 Earnings Top Estimates
Allogene incurred loss of 52 cents per share in third-quarter 2020, wider than the year-ago quarter’s loss of 50 cents. The Zacks Consensus Estimate was pegged at a loss of 55 cents.
With no marketed products, the company did not record any revenues during the quarter.
Quarter in Detail
Research & development (R&D) expenses were $51.4 million, up 28.6% from the year-ago quarter. The significant increase was presumably due to higher clinical activities.
General and administrative (G&A) expenses increased 10.7% year over year to $16.6 million.
The company had $1 billion in cash, cash equivalents and investments as of Sep 30, 2020 compared with $1.1 billion as of Jun 30, 2020.
2020 Guidance Maintained
Allogene maintained its guidance for 2020. The company expects full-year loss to be in the range of $260-$280 million, including stock-based compensation expense of $70 million to $75 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates. The consensus estimate has shifted 5.94% due to these changes.
At this time, Allogene Therapeutics has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% 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.
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Allogene Therapeutics has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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