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Infinity (INFI) Down 10% Since Last Earnings Report: Can It Rebound?

Zacks Equity Research
Activision Blizzard (ATVI) closed at $46.73 in the latest trading session, marking a +1.15% move from the prior day.

It has been about a month since the last earnings report for Infinity Pharmaceuticals (INFI). Shares have lost about 10% in that time frame, underperforming the S&P 500.

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

Infinity Reports Loss in 2018, Sales Up Y/Y

The company reported a loss of 20 cents in 2018, narrower than a loss of 83 cents in 2017.

Revenues in 2018 were $22.1 million, up from $6 million in 2017. Revenues in 2018 were related to the amount received from Verastem for the approval by the FDA of duvelisib for the treatment of adult patients with relapsed or refractory chronic lymphocytic leukemia or small lymphocytic lymphoma after at least two prior therapies, as well as adult patients with relapsed or refractory follicular lymphoma after at least two prior systemic therapies and royalties on net sales of duvelisib following the FDA approval.

2019 Outlook

The company expects net loss for 2019 to range from $30 to $40 million.

Infinity expects that its existing cash, cash equivalents and available-for-sale securities will be adequate to satisfy the company's capital needs into the second half of 2020.

How Have Estimates Been Moving Since Then?

Fresh estimates followed a flat path over the past two months. The consensus estimate has shifted 30.26% due to these changes.

VGM Scores

At this time, Infinity has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. However, 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 B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Infinity has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.



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