Immunovant, Inc. (IMVT) Down 10.6% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Immunovant, Inc. (IMVT). Shares have lost about 10.6% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Immunovant, Inc. 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 drivers.
Immunovant Q4 Earnings Top Estimates, Pipeline in Focus
Immunovant, Inc.reported a net loss of 46 cents per share in the fourth quarter of fiscal 2023 (ended Mar 31, 2023), narrower than the Zacks Consensus Estimate of a loss of 48 cents per share. In the year-ago quarter, the company reported a loss of 41 cents.
Currently, IMVT does not have any approved product in its portfolio. As a result, it is yet to generate revenues.
Quarter in Detail
In the reported quarter, research and development (R&D) expenses were $51.8 million, up 61.9% from the year-ago quarter’s figure. The year-over-year surge was due to increased personnel-related expenses and higher development costs related to the batoclimab program and cross-indication clinical studies. R&D expenses were partially offset by lower contract manufacturing costs related to the development of IMVT-1402, which were initiated in the prior-year period.
General and administrative expenses were $12.4 million in the reported quarter, down 18.4% on a year-over-year basis. The decline was primarily due to lower personnel-related expenses, along with lower financial advisory and legal and other professional costs.
As of Mar 31, 2023, Immunovant had a cash balance of $376.5 million compared with $432.6 million as of Dec 31, 2022.
With its existing cash balance, IMVT expects to fund its operating expenses and capital expenditure requirements into the second half of 2025.
Fiscal FY23 Result
Immunovant reported a loss of $1.71 per share for the fiscal year 2023, wider than the Zacks Consensus Estimate of a loss of $1.66 per share. The company reported a loss of $1.43 per share in the previous year.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
VGM Scores
At this time, Immunovant, Inc. has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions looks promising. Notably, Immunovant, Inc. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Immunovant, Inc. is part of the Zacks Medical - Biomedical and Genetics industry. Over the past month, Emergent Biosolutions (EBS), a stock from the same industry, has gained 7%. The company reported its results for the quarter ended March 2023 more than a month ago.
Emergent Biosolutions reported revenues of $165.1 million in the last reported quarter, representing a year-over-year change of -46.3%. EPS of -$3.17 for the same period compares with $0.18 a year ago.
For the current quarter, Emergent Biosolutions is expected to post a loss of $0.96 per share, indicating a change of -11.6% from the year-ago quarter. The Zacks Consensus Estimate has changed -11.1% over the last 30 days.
Emergent Biosolutions has a Zacks Rank #5 (Strong Sell) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.
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Immunovant, Inc. (IMVT) : Free Stock Analysis Report
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