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Immune Design (IMDZ) Down 2.8% Since Last Earnings Report: Can It Rebound?

Zacks Equity Research
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A month has gone by since the last earnings report for Immune Design (IMDZ). Shares have lost about 2.8% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Immune Design 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.

Immune Design Posts Narrower-Than-Expected Loss in Q2

Immune Design reported loss of 29 cents per share in second-quarter 2018, narrower than the Zacks Consensus Estimate of a loss of 30 cents and the year-ago loss of 54 cents.

Quarter in Detail

Total revenues were $0.76 million, up from $0.73 million in the year-ago quarter. Revenues were mainly received from the collaboration with Sanofi for G103 (HSV2 therapeutic cancer), along with product sales to collaboration partners. Quarterly revenues beat the Zacks Consensus Estimate of $0.64 million.

Research and development (R&D) expenses increased 1.3% to $11 million in the quarter. The surge was due to an increase in personnel-related expenses and a rise in research and development headcount to support the company’s advancing pipeline

General and administrative expenses rose 3% to $4 million.

During the quarter, the company,  stated that it will shift resources to focus on later-stage programs, specifically for the development of G100 in relapsed FL and beyond. Thus, the company is pausing further development of its preclinical programs, CA21 and intratumoral ZVex-IL12. This allocation of resources enables the company to run the planned G100 study at least to the interim analysis with existing capital.

Cash Guidance

Immune Design expects to have  cash to fund operations into the second half of 2020.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in fresh estimates.

VGM Scores

At this time, Immune Design has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. However, the stock was allocated a grade of F on the value side, putting it in the lowest quintile 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 style scores.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Immune Design has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


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